EUR/USD Outlook: Bulls Lose Traction but Still on Course for Nearly 1% Weekly Advance

Technical analysis of Forex market

The Euro eases from one-month high on Friday, as bulls run out of steam following nearly 1% advance this week.

US consumer spending rose above expectations in June and inflation accelerated further above Fed’s 2% target that boosted the dollar on Friday and slowed euro’s rally.

Daily indicators generate initial negative signal on RSI diverging from price action and turning south and overbought stochastic, but signal would need further verification.

Today’s close will be significant, with bearish daily candle after five straight green candles, to add to negative signals.

Sideways-moving 30DMA offer initial support at 1.1846, which is required to hold dips and keep bulls intact

Conversely, break here would weaken near-term structure and signal reversal.

Res: 1.1908; 1.1948; 1.1975; 1.2000.
Sup: 1.1873; 1.1845; 1.1821; 1.1800.