EUR/USD Struggles to Extend Gains Above 1.1400

EUR/USD Struggles to Extend Gains Above 1.1400

5 April 2016, 06:38
Roberto Jacobs

EUR/USD Struggles to Extend Gains Above 1.1400

Having peaked at 1.1405 in early Asia, the EUR/USD pair is seen oscillating below 1.14 handle over the past couple of hours, as risk-off moods dominate markets.

EUR/USD: Final services PMIs in focus

Currently, EUR/USD trades 0.05% higher at 1.1396, having found solid support near 1.1385 region, where the 5-DMA, 1h 20 & 1h 50-SMA coincide. The main currency pair wavers in a 20-pips extremely slim range, as markets await fresh incentives from a raft of final services PMI reports due later in the European session.

However, the major remains underpinned on the back of persistent risk-off sentiment, triggered by renewed oil price sell-off, which weighed on the US and Asian equities and boosted the safe-haven currency euro.
Moreover, weak US economic data released on Monday also provided support to the EUR at the expense of the greenback.

Calendar-wise, Euro zone services PMIs will be reported, followed by the region’s retail sales data. While from the US docket, we have the US trade balance, ISM non-manufacturing PMI and JOLTS jobs openings data.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1437/50 (Apr 1 High/ Oct 2015 levels). A break beyond the last, doors will open for a test of 1.1500 (key psychological levels). On the flip side, the immediate support is placed at 1.1366/56 (1h 100-SMA/ daily S1) below which at 1.1309/1.1275 (10-DMA/ 1h 200-SMA) could be tested.

(Market News Provided by FXstreet)

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