EUR/USD is poised for its largest weekly rise since November

The EUR/USD regained some of its daily losses during Friday's US session and reclaimed the 1.0800 level. The euro was holding onto significant weekly gains as it neared its highest closing price since May 2022.

US Dollar recovers

Following US inflation figures, the US Dollar slightly recovered on Friday after a severe loss the day before. The data revealed that the Consumer Price Index slowed down even more in December, raising hopes that the Federal Reserve will raise interest rates by 25 basis points in February rather than 50 bps as previously expected.

The University of Michigan Consumer Sentiment Index increased to 64.6 in January, exceeding projections of 60.5 and rising above the 59.7 of December, according to data released on Friday. The data increased risk appetite, but they had no effect on the dollar's retreat.

EUR/USD begins its climb

Following a retracement last week, the EUR/USD began to rise again, convincingly breaking over the 1.0700 regions. The euro is plainly bullish on the chart, but numerous technical indicators are overbought.

"The bullish position will gain more supporters if the pair climbs past 1.0870. Prior to the previously indicated 1.1106, the next resistance levels to watch are 1.0950 and 1.1020. According to an Analyst at Market Right Side, a daily close below 1.0745 will deter buyers and might initiate a bearish corrective extension, initially towards 1.0640 and then to 1.0515, the 50% retracement of the 2022 fall.