FXStreet (Córdoba) – EUR/USD is about to end the week 200 pips above the level it had seven days ago. The pair moved with an upside bias all week and on Friday was rising for the fifth day in a row, trading at the highest level in two weeks.
During the American session rose back above 1.1300 and climbed toward 1.1350. It was trading around 1.1340, holding a bullish tone. The euro recovered after falling during the previous two weeks, when it reversed sharply after reaching 1.17.
The decline from the mentioned level was capped by the weekly 20-SMA and the 1.1100 area. From there the euro is recovering.
EUR/USD ahead of a key week
On Friday and also during the week the euro was among the best performers in the currency market while the US dollar finished mostly lower ahead of the Federal Reserve decision.
“While uncertainty connected with next week’s FOMC suggests that volatility levels may increase again near-term, we see little risk of EUR/USD retesting last month’s highs in the coming weeks”, wrote Jane Foley, Senior FX Strategist at Rabobank.
Analysts at Rabobank expect the Fed to raise rates in December and that on a three to six months perspective EUR/USD to move lower on the back of rate differentials. “The euro, however, is likely to hold on to much of its recent gain against many high yielding currencies. In turn the Eurozone economy is likely to be confronted with a more resilient effective exchange rate.”
(Market News Provided by FXstreet)