• US dollar is mostly higher across the board on the back of risk aversion.
  • Euro gains support from the rally against the pound.
  • EUR/USD heads for weekly loss and still remains in the previous range.

The EUR/USD is rising on Friday, and after the beginning of the American session, it peaked at 1.1361 and then pulled back. The US dollar is posting mixed results across the board, ahead of the weekend.

The upside lost momentum amid risk aversion. Equity prices in Wall Street are falling again, with the Dow Jones losing 0.42% and the Nasdaq 1.52%. The negative tone is boosting Treasuries. The 10-year yield stands at 1.74%, while the 30-year 2.06%, both a one-week lows.

The US dollar benefits from negative sentiment. The upside finds some limit amid lower US yields. The predominant tone is the risk aversion so far.

The euro is showing strength in the market and with the Swiss franc and the yen is among the top performers. The EUR/GBP pair is rebounding sharply from two-year lows, and it trades at 0.8375, having the best day in months, and offers support to EUR/USD. Recent release data showed the Eurozone Consumer Confidence index declined from -8.4 to -8.5 in January.

Despite Friday’s gains, EUR/USD is about to end the week lower. It still remains under the 20-week simple moving average that stands at 1.1480. Next week, the key event will be the FOMC meeting. The Fed is expected to open the doors to a March rate hike.

The EUR/USD is back into the previous consolidation range of 1.1370/1.1220. If it manages to rise back above 1.1370 the outlook would improve. On the downside, a break under 1.1300 should clear the way to more losses and to a test of 1.1270.

Technical levels

This article was originally published by Fxstreet.com.Read the original article here.

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