The Euro has returned against the US Dollar to the same level, where the week was started. From a technical perspective this squeeze in needs to end soon, and it would occur by a fundamental move. From a fundamental perspective everyone is cautious, as Trump does his global tour of 2017. However, there are some macroeconomic data releases scheduled for the day, which will be covered by the Dukascopy research team.
The number of Americans filing for unemployment benefits rose less than expected last week, official data showed on Thursday. The Labour Department reported that initial jobless claims rose 1K to 234% in the week ended May 19, following the preceding week's upwardly revised 233K. Meanwhile, market analysts anticipated an increase of 5K to 238K during the reported week. That marked the 116th of claims remaining below the 300K level, the longest stretch since 1973.
US data release at 12:30 GMT
EUR/USD remains near 1.12 mark
During the early hours of Friday's trading session the common European currency traded against the US Dollar just above the strong support cluster near the 1.1190 level. It is almost exactly where this week's trading session began. Due to that factor the situation remains almost unchanged. From the downside the rate is supported by the combined support of the 61.80% Fibonacci retracement level and the monthly R2 at the already mentioned level. From the upside the pair faces the resistance of the upper Bollinger band at 1.1310 and the weekly R1 at 1.1306. The only difference, compared with Monday, is the fact that the Bollinger band has moved higher.
Daily chart
Hourly chart
Read More: Technical AnalysisTraders optimistic towards the US Dollar
Traders remain bearish on the pair, as 61% of open positions are short. Meanwhile, 53% of trader set up orders are to sell the Euro.
OANDA traders remain largely bearish, as 69.90% of open positions are short on Friday, compared to 67.55% previously. In addition, SAXO bank clients are likewise bearish, as 65.17% of open positions are short, compared to 65.97% on Thursday.
Spreads (avg, pip) / Trading volume / Volatility
Average forecast says EUR/USD will trade around 1.11 in late August
Traders, who were questioned on their longer-term views on EUR/USD between April 26 and today expect, on average, that the currency pair may trade slightly above 1.11 in late August. In general, 58% (-1%) of participants believe the exchange rate will be above 1.10 in the following ninety days, and 45% see it above 1.12.