EUR/USD Fades a Spike to 1.1465, Back to Square One
The EUR/USD pair trims gains and now slips back below the mid-point of 1.14 handle, having failed to sustain at fresh 2016 highs.
EUR/USD hits fresh 2016 highs, then retreats
Currently,
EUR/USD trades 0.16% higher at 1.1425, having met strong selling
pressure at 1.1465, fresh six-month highs. The main currency pair’s
bullish run lost legs over the last hours and the prices retraced half
the intraday gains, as the US dollar halted its downwards spiral and
recovered losses against a basket of six major currencies. The USD index
now loses -0.17% to 93.80, versus a -0.35% drop seen earlier on the
day.
The renewed selling pressure seen on the major can be also
justified by a sharp decline in the EUR/GBP cross as the pound
strengthened against the shared currency after the UK CPI data outpaced
estimates and hit fresh sixteen-month highs in March.
However,
the sentiment remains underpinned as the EUR traders continue to cheer
upbeat German CPI and PPI data released earlier today. Germany’s CPI
grew 0.8% m/m in March, faster than February's figure of 0.4% and in
line with the estimates.
Attention now remains on the US import
prices data in absence of relevant economic news from the US docket
today, while the Chinese trade numbers due tomorrow will be closely
monitored for its impact on the broader market sentiment.
EUR/USD Technical Levels
In
terms of technicals, the pair finds the immediate resistance at
1.1465/87 (Daily & 2016 high/ Daily R2). A break beyond the last,
doors will open for a test of 1.1500 (psychological levels). On the flip
side, the immediate support is placed at 1.1387/72 (1h 200-SMA/ daily
S1) below which at 1.1316/1.1300 (20-DMA/ key support) could be tested.
(Market News Provided by FXstreet)
