EUR/USD heads for another weekly close around 1.1850

• Euro highs daily highs during Friday’s American session but remains sideways.
• EUR/USD keeps moving around 1.1850, unable to confirm levels under 1.1800, neither above 1.1900.

The EUR/USD is about to end Friday hovering around 1.1850 posting modest weekly gains but unable to break the current consolidation phase. Recently climbed to 1.1870 hitting a two day high but it failed to make a run higher.

The euro ended the week one a strong not versus the US dollar considering that on Thursday it tested levels under 1.1750. Despite all the action, including the FOMC meeting, EUR/USD keeps moving sideways around the current levels.

“The FOMC meeting this week offered a potential catalyst for fresh momentum in the foreign exchange markets but the outcome of the meeting barely met expectations and hence we see limited scope for any renewed impetus to sell the dollar. That points to this period of consolidation continuing over the short-term”, explained analysts at MUFG Bank. They continue to see the EUR/USD in consolidation mode with the range of 1.1600-1.2000 set to hold over the coming months.

EUR/USD technical outlook

Valeria Bednarik, Chief Analyst at FXStreet points out the weekly chart in EUR/USD continues to develop far above all of its moving averages, with the 20 SMA maintaining its bullish slope above the larger ones. “Technical indicators, in the meantime, stabilized well into positive ground, indicating that there’s no interest on the greenback.” She notes the daily chart retains its neutral stance.

“An immediate support level is 1.1790, followed by 1.1695, August monthly low. However, the greenback remains out of the market favour and a decline towards this last seems unlikely. If it happens, strong buying interest will likely reappear around it. Resistances, on the other hand, come at 1.1915 and 1.2011, this year high”, adds Bednarik.