EUR/USD Under Pressure in Early Europe, Near 1.1370
pair maintains the overnight offered tone heading into early Europe, as
the greenback keeps the recovery mode intact against its major peers
ahead of the FOMC minutes due later today.
EUR/USD trades below 5-DMA at 1.1384
Currently, EUR/USD trades -0.11% lower at 1.1372, miring near session lows struck at 1.1366 last hour. Having peaked at 1.1400 levels in the last NY session, the main currency pair extends its retreat in the early European trading hours, despite deteriorating risk sentiment as the Asian equities drift lower towards closing hours. Japan’s Nikkei drops -0.21%, Australia’s ASX 200 pares gains and trades +0.35%, while the Chinese equities continue to wobble.
Further, markets appear to favour the US currency ahead of the Fed March meeting’s minute’s release, which may hint that the Fed could raise rates as early as this June and hence, provide the much-needed impetus to the USD bulls. In the meantime, the EUR traders await the German industrial production data for further EUR/USD moves amid a data-quiet EMU docket.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1400 (round number). A break beyond the last, doors will open for a test of 1.1437/50 (Apr 1 High/ Oct 2015 levels). On the flip side, the immediate support is placed at 1.1350/43 (psychological levels/ daily S1) below which at 1.1302/1.1273 (1h 200-SMA/ 20-DMA) could be tested.
(Market News Provided by FXstreet)