EUR/USD stabilizes in pre-holiday trade

EUR/USD has stabilized in a limited range on Friday following some volatility the previous day as liquidity continues to decrease ahead of the holidays.

EUR/USD tested the 1.0500 area on Thursday, underpinned by weaker-than-expected personal spending/income US data, but the recovery was capped just shy from the psychological level. The pair has spent the last sessions in a 30-pip range and it was last at 1.0448, 0.11% above its opening price.

EUR/USD has been in recovery mode over the last days and remains on track for a slight weekly gain, after hitting its lowest level in 14-years at 1.0351 on Dec 20.

Next on tap, the US will report November new home sales and final December University of Michigan consumer confidence

EUR/USD technical levels

In terms of technical levels, short-term resistances are seen 1.0503/00 (psychological level), 1.0539 (Dec 15 high) and 1.0567 (21-day SMA). On the other hand, next supports could be found at 1.0381 (Dec 21 low), 1.0351 (2016 low, Dec 20), 1.0334 (Jan 2003 low) and 1.0300 (psychological level).