EUR/USD Treading Water Around 1.1350, Fed Minutes Eyed
The bears take a breather from their downward momentum, allowing the EUR/USD pair to consolidate the heavy losses, as market inch closer towards the FOMC minutes due later in the US session.
EUR/USD awaits FOMC minutes
Currently,
EUR/USD trades -0.33% lower at 1.1347, wavering in the vicinity of the
session lows struck at 1.1341 shortly after the European open. The main
currency pair is seen consolidating the downside before the next leg
lower, which could be possible if the FOMC minutes turn out less
dovish/hawkish and bolster the recovery in the greenback across the
board.
The bearish bias around the EUR/USD pair can be also
partly attributed to the poor German industrial production data, which
showed that the industrial activity dropped notably from 2.3% to -0.5%,
while the yearly print moderated to 1.3% from 1.8%. While the Euro zone
retail PMI print also witnessed a decline from the previous reading.
All
eyes now remain on the March FOMC minutes release, which is likely to
spur volatility and have significant impact on the major.
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 1.1306/1.1300 (1h 200-SMA/ round number) below
which at 1.1274/73 (daily S3/ 20-DMA) could be tested.
(Market News Provided by FXstreet)
