EUR/USD consolidates near mid-1.18s, remains on track to finish week higher

• EUR/USD trades in a tight 40-pip range on Friday.
• Macroeconomic data from the U.S. were largely ignored.
• US Dollar looks to close the week with modest losses near 93.

After edging lower toward the 1.18 handle and refreshing its 2-day low, the EUR/USD pair didn't have a difficult time recovering its losses as the thin trading volume ahead of Christmas didn't allow any decisive moves. As of writing, the pair was trading sideways near mid-18s, remaining essentially unchanged on the day.

Today's data from the United States revealed that the annual core-PCE price index, which the Fed uses as its primary gauge of inflation, rose to 1.8% in November from 1.6% in October and surpassed the market estimate of 1.7%. Moreover, personal spending on a monthly basis grew by 0.6% following October's 0.2% increase. However, the greenback failed to take advantage of these robust readings amid separate disappointing reports.

Durable goods orders excluding transportation contracted by 0.1% in November and the final reading of the University of Michigan's Consumer Sentiment Index eased to 95.9 from 96.8. At the moment, the DXY is comatose around 92.90, slightly higher on the day.

With most major markets closed at the start of the next week, the pair is likely to extend its subdued trading action and fluctuate in a narrow band until the first week of January.

Technical outlook

The initial support for the pair could be seen at 1.0810/15 (100-DMA/daily low) ahead of 1.1720 (Dec. 12 low) and 1.1660 (Nov. 14 low). On the flip side, resistances align at 1.1900 (psychological level/Dec. 20 high), 1.1960 (Nov. 27 high) and 1.2000 (psychological level). The RSI indicator on the daily chart is sitting near the 50 mark, supporting the view of a short-term neutral outlook for the pair.

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