EUR/USD.The direction of the EUR/USD on Friday will be determined by trader reaction to 1.0880.
The Euro is trading nearly flat on Friday after recovering from an early session setback. The stronger U.S. Dollar is fueling the selling pressure.
The greenback is being supported by the prospect of a more aggressive pace of Federal Reserve interest rate hikes, while the single-currency is being weighed down by investor concerns about the economic costs of war in Ukraine and a potentially nail-biting election in France, according to Reuters.
The main trend is down according to the daily swing chart. A trade through the intraday low at 1.0848 will signal a resumption of the downtrend.
A move through 1.1185 will change the main trend to up. This is highly unlikely but due to the prolonged sell-off in terms of price and time, the EUR/USD is ripe for a closing price reversal bottom.
The minor trend is also down. A trade through 1.0939 will change the minor trend to up. This will shift momentum.
The nearest resistance is a 50% level at 1.0972.
Don’t miss a thing! Sign up for a daily update delivered to your inbox
Sign Up
Free Forex Signals 