EUR/USD ends week higher, still unable to move away from 1.2300
- Euro ends week higher against the US dollar but far from highs.
- Greenback managed to trim losses after FOMC and ECB minutes.
The EUR/USD pair remained above 1.2300 on Friday and rose marginally. It found resistance at 1.2350 it was about to end the week with a gain of around 50 pips.
The pair peaked on Wednesday at 1.2395 and then bounced to the downside following the release of the FOMC minutes. It continued to correct lower on Thursday weakened by the ECB minutes. The decline was capped by 1.2300 and then, euro rebounded modestly, rising to 1.2350. While the tone of the Fed was seen as “hawkish”, the ECB offered no signals of potential talks about the exit strategy.
Technical outlook
On a wider perspective, EUR/USD continues to move around the 1.2300 area. Since February it is moving sideways without a clear direction. Last week it found support on an uptrend line from November lows. That line stands at 1.2250/60 at the moment, and a break lower could be seen as a bearish signal from a technical perspective.
To the upside, the pair continues to be unable to hold firm above 1.2400. If the euro manages to rise above, it is likely to test a long-term downtrend line near 1.2450. A break higher could clear the way for a test of 2018 highs.