Looking at the headline EUR/USD currency exchange rate on the above daily MT 4 chart, the euro currency (EUR) is trading around 1.1830 during the Asian trade hours on Friday. This Forex market is trying to find bids from 1.1810 and recover.
The euro caught some support after the European Central Bank (ECB) left their monetary policy and overnight lending rate unchanged this month. During their statement, the central bank made no comments nor showed concern about the strength of the euro currency. This disappointed the bears.
Today, Germany will release monthly consumer price index (CPI) data. Italy is releasing their quarterly unemployment rate. The United States will release their monthly core and headline consumer price index.
The United Kingdom will release their monthly gross domestic product (GDP) data as well as monthly industrial production and manufacturing data. Britain is also releasing their monthly goods trade balance. Canada is releasing their monthly capacity utilization rate.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD price action chart, the spike towards 1.19 was not very convincing overnight as the world’s most liquid currency exchange rate then fell back to 1.1815. Before closing overnight, this Forex market formed what is called a daily candle with a long upper shadow.
This is usually a signal that there is a buy off a sell happening which could lead to more gains with the EUR/USD Forex market.
However, the relative strength index (RSI) is moving lower which is indicative of weakness ahead as prices are near overbought. With that said, the first downside barrier lines up at rising trend line originating from the 14 May and 10 July low price points.
This layer of technical support lines up at 1.1783. The next layer of technical support then lines up at the 3 August low price point at 1.1695.
On the upside, the first layer of technical resistance lines up at the Thursday high price point at 1.1918.