EUR/USD Ends The Week Higher But Lacks Momentum

The EUR/USD pair continued to gravitate around the 1.0600 area on Friday barely reacting to U.S. Personal Consumption Expenditure (PCE) Price Index data and ending the week slightly above its opening price.
 
At the time of writing, the EUR/USD pair is trading at the 1.0620 area, 0.25% higher on the day, after hitting a daily high of 1.0632 earlier in the session.
 
The U.S. PCE Price Index (the preferred Federal Reserve’s inflation gauge) increased by 5.5% over the 12 months to November, slightly above expectations but slowing from the 6.1% October reading. The Core PCE Price Index rose by 4.7% in the same period, matching the investors' estimates and below the previous reading of 5%.
 
Meanwhile, Durable Goods Orders dropped 2.1% in November, well below the consensus of a 0.6% decline. The Nondefense Capital Goods Orders excluding Aircraft increased by 0.2%, beating the market consensus.
 
Still, macroeconomic data had little impact on the greenback, which weakened versus most competitors amid thinned trading conditions heading into the final trading week of 2022. 

From a technical perspective, the EUR/USD short-term bias remains bullish as the price stands above its main moving averages on the daily chart, although indicators show dwindling momentum. The RSI holds a neutral slope above its midline, while the MACD prints higher red bars reflecting the lack of upward strength.
 
On the upside, the immediate resistance level is given by the weekly highs at the 1.0660 area, followed by the 1.0700 psychological mark. On the downside, support levels could be found at a ​​broken descending trend line drawn from May 2021 highs, around the 1.0560-70 zone, followed by the 20- and 200-day SMAs at 1.0539 and 1.0332, respectively.
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