EUR/USD has turned south after having tested 1.06 on Thursday. The pair could extend downward correction as 1.0520 support fails, FXSTreet’s Eren Sengezer reports.
1.0560 aligns as interim resistance
“In case the pair starts using the 1.0520 level as resistance, 1.0460 (Fibonacci 23.6% retracement, 20-period SMA) could be seen as the next bearish target ahead of 1.0400 (static level, psychological level).”
“On the upside, 1.0560 (Fibonacci 50% retracement) aligns as interim resistance before 1.0600 (Fibonacci 61.8% retracement, 200-period SMA) and 1.0640 (100-period SMA).”
EUR/USD holds above 1.0500 after EU inflation data
EUR/USD consolidates Thursday’s gains but manages to hold above 1.0500 on Friday. The data published by Eurostat showed that the HICP inflation was 8.1% on a yearly basis in May, matching the flash estimate and the market expectation. Investors await US data, Powell’s speech.
GBP/USD struggles to gain traction, trades near 1.2300
GBP/USD has staged a modest rebound in the early European session on Friday but failed to gather bullish momentum after having climbed above 1.2300. Cautious comments from BOE Chief Economist Huw Pill limit the pair’s upside ahead of US data.
Gold remains depressed below $1,850, bulls trying to defend 200-DMA
Gold struggled to capitalize on its strong gains recorded over the past two trading sessions and witnessed some selling on the last day of the week. The XAUUSD remained depressed through the first half of the European session.