The euro retreated on Friday after a rally on Thursday. Although the market was getting ready to return to the previous day’s highs, a modest price increase happened.
On Friday, industrial production growth in the United States slowed to 5.8% versus 6.4%, beating market expectations of a 4.9% fall. The euro grew slightly in light of a slight drop in US industrial production.
Today is a federal holiday in the United States. Therefore, the market is likely to trade sideways due to the absence of American traders. After all, these are US financial institutions that control most of the capital circulating in the global financial market. So, there will hardly be any activity in the market without them.
The US dollar partially recovered against the euro on Friday. Eventually, the pair settled below the mark of 1.0500. Despite the generally stronger greenback, quotes are still in a corrective stage. The Relative Strength Index (RSI) hovers around 50 on the 4-hour chart, signaling a flat market. On the daily chart, the indicator is in the range between 30 and 50, showing a downtrend.
Multiple crossovers of the Alligator’s MAs confirm the flat market on the 4-hour chart. The Alligator is signaling a downtrend on the daily chart, and its MAs are not crossed.
Technical Outlook
The pair will likely hover around 1.0500 today amid a decrease in trading volumes and market activity. The corrective move could extend should the quote settle above 1.0570 on the 4-hour chart. So far, the current flat market indicates a gradual recovery of dollar positions.
Speaking of complex indicator analysis, there are mixed signals for short-term and intraday trading because of the flat market. In the medium term, technical indicators signal the general downtrend.
