EUR/USD sees choppy Friday, testing 1.06
|- The EUR/USD is catching some minor lift but mostly flat for Friday near 1.0600.
- Broad market sentiment is seeing an improvement heading into the close, pushing down the US Dollar.
- Next week to open quiet before a double-header PMI reading for both the EU and the US on Tuesday.
The EUR/USD kicked off Friday's trading session near 1.0586 and has been keeping in a tight range for most of the day, dipping into an early low of 1.0565 before catching a choppy lift into the 1.0600 handle.
The Euro (EUR) caught a lift higher on Thursday, pinging 1.0616 after dovish comments from Federal Reserve (Fed) Chairman Jerome Powell pushed down market expectations of a quicker rate cut cycle in the future.
Friday sees limited action as investors position themselves ahead of the weekend closing bell before next week rounds the corner into a dual Purchasing Manager Index (PMI) reading for both the EU and the US.
Before that, Euro traders will see Monday's latest EU Consumer Sentiment indicator, with October's reading forecast to decline from -17.8 to -18.2, and then Tuesday brings the latest round of EU HCOB PMIs for October, where investors are expecting the headline composite figure to tick upwards into 47.4 from 47.2.
Following that will be the US' S&P Global PMIs for October, with the services and manufacturing components are both expected to decrease slightly; the Services PMI is expected to slip from 49.8 to 49.5, while the manufacturing side is seen declining from 50.1 to 49.9.
EUR/USD Technical Outlook
The Euro is seeing some sideways momentum develop on the daily candlesticks, with the descending trendline from 1.1275 creating some rough chop on the charts, and topside pressure from the descending 50-day Simple Moving Average currently dropping through 1.0700. Bidders will have a difficult time getting past the last swing high into 1.0650 if momentum doesn't develop soon, and the 200-day SMA is rolling over into a bearish stance just north of 1.0800.
On the low side, the last swing low into 1.0450 represents the near-term floor, and a bearish continuation leaves the EUR/USD exposed to further downside into fresh lows for 2023, with the nearest technical support at last November's bottoms at 1.0222.
EUR/USD Daily Chart
EUR/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.