EUR/USD Forex Technical Analysis – Sellers have Clean Shot at .9952 Bottom

The Euro is trading lower against the U.S. Dollar on Friday, putting it on course for parity as the single-currency sits in a position to post its worst weekly loss since July 8.

Weighing on the common currency is the stronger U.S. Dollar. It’s being supported by hawkish comments from a number of Fed officials on Thursday, reiterating that the central bank should continue its aggressive tightening to contain inflation.

At 12:39 GMT, the EUR/USD is trading 1.0056, down 0.0031 or -0.31%. On Thursday, the Invesco CurrencyShares Euro Trust ETF (FXE) settled at $93.23, down $0.83 or -0.88%.

St. Louis Fed President James Bullard, San Francisco Fed President Mary Daly and Kansas City Fed President Ester George all said continuing to hike rates in a bid to fight inflation would be reasonable, CNBC reported.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the intraday low at 1.0046 will signal a resumption of the downtrend. A trade through 1.0368 will change the main trend to up.

The minor trend is also down. A trade through 1.0203 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is .9952 to 1.0368. The EUR/USD is trading on the bearish side of its retracement zone at 1.0111 to 1.0160, making it resistance.

Daily Swing Chart Technical Forecast

Trader reaction to 1.0087 will determine the direction of the EUR/USD on Friday.

Bearish Scenario

A sustained move under 1.0087 will indicate the presence of sellers. Taking out 1.0046 will indicate the selling pressure is getting stronger. This could trigger a late session acceleration to the downside with .9952 the next major target.

Bullish Scenario

A sustained move over 1.0087 will signal the return of buyers. This could fuel an intraday short-covering rally with 1.0111 the first target. Overcoming this level should lead to a test of 1.0160.