EUR/USD remains resilient
EUR/USD is trading higher on Friday, touching $1.3040. Yesterday’s attempt to move lower was capped by the $1.3060 support. It is very unlikely that today the pair breaks from the $1.3070/3180 range – there are no potential market-moving events on the calendar.
The technical picture gives some more room for EUR strength – the weekly chart looks quite bullish after the last week’s engulfing candle. However, upbeat US data could push the pair lower. A drop below the $1.2990 support would be a strong selling signal.
Actually, Mr. Bernanke didn’t say anything new this week – the QE exit remains in plans, but the terms will depend on US economic background. Any further dollar gains will depend on the US releases. In the absence of good news, we would expect the pair to remain flat in the $1.3000/1.3300 range.
Chart. Daily EUR/USD