The Euro (EUR) inched higher against the US Dollar (USD) on Friday, increasing the price of EURUSD to more than 1.1500 following some key economic releases. The technical bias remains bearish because of a lower low in the recent downside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1595. Since the price is increasing, a resistance can be noted around 1.1618, an immediate horizontal resistance level ahead of 1.1693, the 23.6% Fib level resistance and then 1.1824, the trend line resistance level as demonstrated in the given below chart.
On the downside, a support can be noted around 1.1496, the confluence of a trendline resistance and a horizontal support level likely to prevent the price from falling below this level this level. Another resistance level may come around 1.1440, the trend line support level and then comes 1.1300, the key horizontal support level as demonstrated in the given above chart. The technical bias may remain bearish as long as 1.1518, the major horizontal resistance level remains intact.
ECB Chief Mario Draghi
The European Central bank has no plan to issue a digital currency because the underlying technology is still fragile and the use of physical cash still high in the eurozone, the ECB president said on Friday.
The sudden proliferation of cryptocurrencies such as Bitcoin, essentially a privately created online token, has sparked a global debate over whether central banks should also launch their own digital money.
This would give holders a direct claim on the central bank, bypassing the banking system and potentially revolutionizing the way monetary policy is carried out.
He added that technologies such as distributed ledgers “require substantial further development” and that he saw no “concrete need” to issue a digital euro.
Trade Idea
Considering the overall price behavior of the pair over the last few weeks, selling the EURUSD around current levels can prove to be a good decision in short to medium term.