EUR/USD unable to end week above 1.1200

EUR/USD reversed sharply during the American session. Despite weak US economic data, the US dollar strengthened during the American session and pushed EUR/USD back toward the level it had before the release of retail sales and PPI data, avoiding a weekly close on top of 1.1200.

After hitting 1.1220, the highest level in a week , the pair reversed and roped finding support at 1.1160/65. Near the end of the week, it was trading at 1.1170, up less than 30 pips from the level it had a week ago.

Capped by the 20-WMA

Today’s rally was capped by the 20-week simple moving average, that also limited the upside last week. The line stands around 1.1220/30; if the euro manages to post a weekly close on top it could signal more gains ahead but as long as it fails to break it, the current trading range between 1.0950 and 1.1230 is likely to drive price action.

Next week

In the US, the main economic events next week will be CPI data on Tuesday and the FOMC minutes on Wednesday. While in the Eurozone, traders will look into the ZEW expectations survey (Tuesday), inflation numbers and the ECB accounts of the July monetary policy meeting in July (Thursday).