The Australian Dollar finished the week almost exactly unchanged against its US namesake, setting fresh two-month highs before tumbling into Friday’s close. FXstreet.com (Córdoba) – The Euro fell on Friday for the third session in a row accumulating a decline of 230 pips. EUR/USD failed to consolidate above 1.3800 and weakened erasing early gains and finished the week with an important decline.

Continued bearish price action on EUR/USD, a daily chart of which is shown, has broken down cleanly below the rising wedge pattern (a bearish formation) as noted yesterday. This breakdown follows on the heels of price being rejected by key resistance in the 1.3800 price region, and indicates that the overall downtrend in the pair is still firmly intact. The current bearishness off the wedge could target further downside support in the key 1.3400 price region, a breakdown of which would confirm a downtrend continuation.

- James Chen, CTA, CMT

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Dollar Recovers Ground as Traders Focus Risk Trends rather than Tame Inflation The dollar is a multi-faceted asset with functions that range well beyond a simple currency that reflects the health of the US economy that it represents. Today’s price action was a good indication of this complexity.