EUR/USD erases weekly losses but remains limited by 1.1430

• EUR/USD up for the second-day in-a-row but finds resistance at 1.1420.
• Upside supported by a correction of the US dollar across the board.

The EUR/USD pair printed a fresh daily high after the beginning of the US session at 1.1420 but lost momentum and pulled back modestly, holding on top of 1.1400. Volatility remains low on Friday with the greenback modestly lower and majors moving in small price action ranges.

“The common currency trimmed its weekly losses against the greenback, but remained depressed for a fourth consecutive week, bouncing from a fresh yearly low of 1.1300. Dollar's decline seems a due correction as longs are overcrowded, but absent EUR demand kept the upside in check. Fear and uncertainty were again the main market motors, despite some positive headlines that should have averted it”, says Valeria Bednarik, Chief Analyst at FXStreet.

EUR/USD Levels to watch

The euro is trading at the highest level in three days against the US dollar and around the same it closed last week. Despite the ongoing recovery, it still looks vulnerable. A break above 1.1430 would add more strength to the euro and would remove some of the pressure. A recovery above 1.1500 would improve the technical outlook significantly.

To the upside, resistance levels might be located at 1.1430/35 (Aug 13 & 14 high), 1.1480 and 1.1510. On the flip side, support could be seen at 1.1385 (20-hour moving average), 1.1350 and 1.1335 (Aug 16 low).