Some week-end profit taking sends the EUR/USD back to 1.0800

FXStreet (Tokyo) - The EUR/USD is recovering more than half of Thursday's losses as the pair rallied 200 pips in the day from 1.0670 to trade as high as 1.0880; however the euro was sold at this level and now it's testing the 1.0800.

The euro is advancing for the fourth day in the last five sessions as it recovered from 1.0465 low to post-fed highs of 1.1040. But the EUR/USD fell 400 pips on Thursday before advancing more than 200 pips on Friday. So the EUR/USD is posting its first positive week since mid February.

Currently, EUR/USD is trading at 1.0805, up 1.41% on the day, having posted a daily high at 1.0883 and low at 1.0649. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

EUR/USD forecast

According to the EUR/USD forecast poll, "the upward corrective movement may extend, but in the long term investors keep thinking on parity." In the same line, FXStreet chief analyst Valeria Bednarik affirmed: "The dollar is down against most of its rivals by the end of the week, but calling for a bottom may be a bit premature, according to long term charts."

Euro to Dollar exchange rate levels

As for the short term, if the EUR/USD breaks below 1.0800, it will find supports at 1.0750 and 1.0700. To the upside, resistances are at 1.0820, 1.0880 and 1.0920.

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