The euro recorded a losing session against the dollar on Friday. The single currency ended the week at lower levels, bringing the pair close to the support at 1.0769. If the negative momentum continues, the key level will be overcome and the new goal of currencies will be the second support at 1.0707. Session on Friday started at a price of 1.0872 as the bear trend was leading from the start and dominated throughout. Bottom of the day was hit at 1.0789 and the finish line was crossed only 6 pips higher.
The single currency registered an increase against the dollar on Monday. The euro break two-day losing streak and marked gains. So break of support at 1.0769 was postponed and short-term expectations remain in favor of the euro. In this case, the pair is likely to make a test of resistance at 1.0917. Monday session started at a price of 1.0790, as a bullish trend was leading all the time. Tip of the day was reached at 1.0856, and session closed with 8 pips below.
On yesterday session the EURUSD rallied and closed well in the green, near the high of the day, in addition closed within the previous day range, suggesting a weak bullish momentum.
The pair failed to close above the 10 and the 50-day moving averages that now are acting as a dynamic resistance.
The key levels to watch are: The previous swing high at 1.0975 (resistance), 10-day moving average at 1.0866 (resistance), the 50-day moving average at 1.0863 (resistance) and a swing low at 1.0712 (Support).
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