EUR/USD Extends Losses on Praet’s Comments & Turnaround in Stocks
The offered tone around EUR strengthened on ECB’s Praet’s dovish comments and turnaround in stocks, pushing the EUR/USD pair to a session low of 1.1365 levels.
Trades below previous cyclical high
The spot is trading slightly below the previous cyclical high of 1.1376 (Feb high). Praet assured markets the central bank would act forcefully to counter low inflation. The comments pushed the pair lower from 1.1384 to 1.1367 levels.
Meanwhile, stock markets across Europe erased early losses to trade with moderate gains, which has capped the demand for Euros. The pan-European Stoxx 50 index now trades 0.5% higher on the day. With no major US data due for release, the spot remains at the mercy of oil price proves and the resulting impact on the broader market sentiment.
EUR/USD Technical Levels
The immediate support is seen at 1.1342 (Mar 17 high), under which the spot could challenge bids around 1.1293 (23.6% of May 14 high-Mar 15 low). Acceptance below the same would expose 1.1257 (61.8% of 1.1714-1.0517). On the other hand, a break above 1.1418 (76.4% of 1.1714-1.0517) would open doors for 1.1468 (May 15 high) and 1.15 levels.
(Market News Provided by FXstreet)