• A modest USD weakness helps regain traction and bounce off weekly lows.
• Remains on track to post weekly losses, but end with gains for the month.
• Investors now look forward to next week’s important releases for fresh impetus.
The EUR/USD pair held on to its recovery gains and now seems to have entered a bullish consolidation phase near the 1.2325-30 region.
The pair stalled this week’s retracement slide from near 6-week tops and found some support near the 1.2285-80 region, snapping three consecutive sessions of losing streak.
A subdued US Dollar price action, amid lack of any fresh fundamental drivers and holiday-thinned trading conditions, helped the pair to gain some positive traction and move back closer to yesterday’s swing high.
Despite the up-move, the pair seems all set to end the week with some losses, third in the previous four but remains on track to post the third month of gains in the previous four.
Meanwhile, looking at the broader picture, the pair remains confined within a broader trading range and now look forward to next week’s important macro releases, including the keenly watched NFP, for some fresh directional impetus.
Technical levels to watch
Immediate resistance is pegged near the 1.2335-40 area, above which a bout of short-covering could assist the pair to head back towards reclaiming the 1.2400 handle. On the flip side, weakness back below the 1.2300 handle, leading to a subsequent break below the 1.2285-80 support, might now turn the pair vulnerable to extend its downfall towards 1.2240 intermediate support en-route the 1.2200 handle.
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