Eurusd Under Pressure After Mixed Us Data

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Eurusd Under Pressure After Mixed Us Data

EUR/USD Under Pressure After Mixed US Data

The trading range of EUR/USD remains narrow during Friday's trading session, and it appears that the pair is struggling to find its next direction.

The recent data from the US was consumer confidence (UoM), which missed the forecasts. In October, the index value was recorded at 63.8, which declined to around 60.4 during November.

After the data, most of the indices are still in green, which is a positive development given the slump witnessed on Thursday. This development is weighing heavily on the US Dollar, which is also a reason behind the lack of direction seen in EUR/USD.

RSI Hints At More Downside For EUR/USD

A quick look at the RSI indicator shows a reading under 50 on the 4-hr chart of EUR/USD. If we look at the price action, it also shows that the pair is sliding below the middle trendline of the bullish regression channel. This suggests that the EUR/USD short-term bias is tilted towards the downside.

For now, it looks like the EUR/USD has failed to establish a base above the 1.0680 level, which was the middle line of the ascending channel. It means the support level at 1.0660 will be relevant as it aligns with the 50 SMA as well.

Next up is 1.0640, and then the support level is 1.0620, which is at the lower end of the ascending channel. In addition, this level also aligns with the 100 SMA.

On the top side, the nearest resistance is 1.0700, followed by 1.0730 and then 1.0750. However, since the EUR/USD is under seller pressure, it means the chances of hitting these levels will be very low.

Elsewhere, the Fed's chair, Jerome Powell, once again highlighted the need to adopt a policy based on the data. He added that the incoming data will pave the way for the next policy measures by the Fed.

Another thing added by the Fed's chair was that the Fed has already taken enough measures to bring down inflation under 2%. This was the comment that allowed the EUR/USD to turn lower in response to USD strength.

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