The Euro has been very noisy on Friday, as traders are trying to navigate a complex set of economic announcements.
EUR/USD
The Euro has been very noisy during the trading session on Friday as we continue to bounce around the 50-day EMA. This has been an event-filled day as we got core PCE numbers coming out of the United States a little hotter than anticipated. Advanced GDP lower than anticipated and have also gotten the word out of the Supreme Court that they are striking down some of the unilateral powers that President Trump has used to place tariffs.
The catch of course with that is that there are other ways to place tariffs, and the Trump administration has said for some time that they do have a plan B. I don't know if the tariff situation really comes into play for anything longer-term, at least not yet.
Furthermore, this was all on a Friday, so traders are going to be thinking about this over the weekend, probably doing some studying and we'll just have to see. Furthermore, after that, you have to keep in mind that the Americans could attack the Iranians over the weekend and that of course throws some noise into the markets as well.
Support and Resistance Targets
That being said, hanging around the 50-day EMA and the 1.18 level of course does make a certain amount of sense as this is an area that previously had been resistance. If we do rally from here, we could go looking to the 1.19 level. Breaking above there then opens up the possibility of a move to the 1.21 level.
If we break down below the lows of the last couple of days, I suspect that the Euro starts to drift towards the 1.17 level followed by 1.16. However, I would also think that if the Euro starts to fall apart here against the dollar, we probably see the dollar really pick up traction against other currencies.