- The EUR/USD pair is rising slightly, but remains sideways near 1.0600.
- Overall market sentiment is improving heading into the close, pushing the US Dollar lower.
- Next week will open quietly, before EU and US PMI data are released on Tuesday.
The EUR/USD pair started Friday’s session near 1.0586 and has remained in a tight range for most of the day, falling to an initial low of 1.0565 before touching the 1.0600 area.
The Euro rose on Thursday and settled at 1.0616, after dovish comments from Federal Reserve (Fed) Chairman Jerome Powell reduced market expectations of a faster rate cut cycle in the future.
Action will be limited on Friday as investors position themselves ahead of the weekend close, ahead of the EU and US Purchasing Managers’ Index (PMI) release next week.
Before that, euro traders will learn about the latest EU Consumer Sentiment indicator on Monday, with the October reading expected to fall from -17.8 to -18.2, and the latest round of HCOB PMIs from EU for October, where investors expect the composite headline figure to rise to 47.4 from 47.2.
The US S&P Global PMIs for October will be released next, with a slight decline in the services and manufacturing components; The services PMI is expected to fall from 49.8 to 49.5, while the manufacturing PMI would decline from 50.1 to 49.9.
EUR/USD Technical Outlook
The Euro is experiencing sideways momentum on the daily candles, with the descending trend line from 1.1275 generating a sharp drop on the charts, and bullish pressure from the descending 50-day simple moving average currently passing through 1.0700. Bidders will have a hard time breaking through the last swing high at 1.0650 if momentum doesn’t develop soon, and the 200-day SMA is shifting toward a bearish stance just north of 1.0800.
On the bearish side, the last swing low at 1.0450 represents the near-term bottom, and a bearish continuation leaves EUR/USD exposed to further declines towards new lows by 2023, with the closest technical support at past lows November at 1.0222.
EUR/USD Daily Chart
EUR/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
