The EUR/USD pair traded lower to 1.0775 on Friday, driven by a stronger US Dollar due to hawkish comments from Federal Reserve officials. The key resistance level for the pair is expected to be between 1.0790 and 1.0800, with the first downside target at 1.0724. The daily chart shows the pair within a descending trend channel since December 2023, with a bearish outlook as it remains below the 100-period Exponential Moving Average (EMA). However, the RSI stands in bullish territory, suggesting potential upside.
The next resistance levels to watch for are at 1.0885, 1.0943, 1.0981, and the psychological level of 1.1000. On the downside, the first target is at 1.0724, with further losses potentially reaching 1.0650, 1.0600, and 1.0500. The US Michigan Consumer Sentiment Index for May will be released later on Friday, with expectations of a decline from April. The outlook for EUR/USD will depend on how this data impacts market sentiment and the USD.
Overall, the bearish momentum for EUR/USD remains strong, although there is potential for an upside move based on the RSI’s bullish stance. Traders will be keeping a close eye on the key resistance levels and downside targets to gauge the pair’s direction. Any surprises in the US economic data could cause volatility in the forex market and impact the pair’s movement.
In conclusion, EUR/USD continues to trade lower on Friday, supported by a stronger US Dollar. The pair remains within a descending trend channel on the daily chart, with key resistance levels between 1.0790 and 1.0800. The first downside target is at 1.0724, while further losses could push the pair towards 1.0650 and 1.0600. Traders will be watching for the US Michigan Consumer Sentiment Index data release to determine the pair’s next move. The RSI remains in bullish territory, suggesting the potential for an upside move despite the bearish outlook. Stay tuned for market developments to see how EUR/USD reacts to upcoming events.
