A resurgent U.S. dollar has put the euro currency on the back foot as we head into Friday’s trade session. The headline EUR/USD currency exchange rate is trading around 1.1762 to 1.1765 and below the fifty (50) day simple moving average (SMA).
The economic calendar is fairly light as we head into the weekend. The euro area is publishing monthly core and headline consumer price index (CPI) data.
The head of the German central bank will be giving remarks as well. The economic calendar out of the United States is also fairly light. The University of Michigan will publish their monthly consumer confidence and their consumer expectations surveys.
The private Baker Hughes industry leader will release weekly U.S. oil count and active rigs data. The United Kingdom is publishing monthly core and headline retail sales data. Canada has no economic data scheduled for release on Friday.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above daily MT 4 price action chart, the euro currency saw its biggest daily loss, on Thursday, since 17 August. The safe haven dollar saw broad support throughout the Forex markets.
The benchmark EUR/USD Forex market is also trading below the 50 day simple moving average. With that said, further downside with the EUR/USD currency exchange rate has immediate technical support lining up at 1.1750.
Given the negative looking technical indicators, a daily close below 1.1750 opens the door for the year low price point lining up at 1.1665. There is another level of technical support before 1.1665 in play at 1.1770.
On the upside, the single currency has immediate technical resistance at a former key technical support level. This downside barrier comes into play at the 50 day simple moving average around 1.1798.
A daily close above the 50 day simple moving average should open the door for a key horizontal technical support level in play at 1.1910.