Forex: EUR/USD pressured, at weekly lows

FXstreet.com (Córdoba) - The EURUSD edged lower on Friday, extending its setback from its monthly high of 1.2442 scored at the beginning of the week, as disappointing Chinese data sparked risk aversion and boosted the greenback across the board.

EURUSD printed a marginal new low for the week at 1.2259 during the European session, where the 20-day SMA acted as dynamic support, and has spent the last hours consolidating right above that level. At time of writing, EURUSD is quoting at the 1.2265/70 zone, down 0.3% on the day.

From a technical view, "The bearish tone remains strong in this 4 hours chart, with price stalling right above 1.2250 static support level, which converges with the 61.8% retracement of the latest short term bullish rally: if the level gives up, selling pressure will likely accelerate, with immediate target at 1.2200/20 area, ahead of 1.2160 price zone", says Valeria Bednarik, chief analyst at FXstreet.com.

"To the upside, 1.2300/10 comes as immediate resistance area, and only sustained gains above will prevent the pair to extend its bearish run today. 1.2330/40 area however, will likely hold", she adds.