EUR/USD Strengthens Over 1.1151, Weakens Under 1.0972

The Euro is under pressure Friday, but remained in a position to post its biggest weekly gain in six weeks as traders relaxed a little after Russia avoided default on dollar-denominated debt and markets continued to assess the broader impact of the start of the U.S. rate hike cycle.

At 19:04 GMT, the EUR/USD is trading 1.1052, -0.0039 or -0.36%. The Invesco CurrencyShares Euro Trust ETF (FXE) is trading $102.95, up $0.37 or +0.36%.

The single currency is on track for its biggest weekly percentage gain since the first week of February, when European Central Bank President Christine Lagarde signaled for the first time that interest rates will rise in the Euro Zone in 2022.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Thursday when buyers took out the previous main top at 1.1121. A trade through the main bottom at 1.0901 will change the main trend to down.

On the downside, the support is a pair of 50% levels at 1.1019 and 1.0972.

On the upside, the resistance is a pair of 50% levels at 1.1098 and 1.1151.

Daily Swing Chart Technical Forecast

The near-term direction of the EUR/USD is likely to be determined by trader reaction to 1.1061.

Bullish Scenario

A sustained move over 1.1062 will indicate the presence of buyers. This could lead to a labored rally with potential upside targets coming in at 1.1098, 1.1137 and 1.1151. The latter is a potential trigger point for an acceleration to the upside with 1.1389 the next major target.

Bearish Scenario

A sustained move under 1.1061 will signal the presence of sellers. This could lead to a labored break with potential downside targets coming in at 1.1019 and 1.0972.

The selling pressure could increase on a trade through 1.0972. This will lead to a test of the main bottom at 1.0901. Taking out this level will change the main trend to down. This could trigger an acceleration into the next main bottom at 1.0806.