The Euro advanced on Friday, up 0.2% versus the USD. Although the EURUSD was not able to break the 1.20 level, the pair climbed as much as 0.4% to 1.1968 on Friday, it’s highest level since last Monday, but couldn’t keep the upward momentum as US Consumer sentiment data came slightly better than expected, supporting some USD demand towards the end of the session.
This was a challenging week for the EUR, testing new year-to-date lows but at the same time managing to hold support on its 55-week moving average around 1.1830. Important levels to watch going forward will be 1.20 and 1.2020, technically speaking, a break above those levels could trigger more EUR demand as the currency breaks from the downward trading range experienced since the beginning of the month, between 1.18 and 1.20 and tries to climb back to the upper range (1.22-1.24) experienced between February and April.
This week will bring some interesting developments as the EU will get an update on Brexit, while Angela Merkel will be meeting Vladimir Putin. On the data front, markets will be paying attention to the latest GDP and Industrial Production numbers on Tuesday plus Consumer Price Inflation on Wednesday.