EUR/USD weaker, Heading Towards Hourly 200-SMA

EUR/USD weaker, Heading Towards Hourly 200-SMA

8 April 2016, 07:49
Roberto Jacobs

EUR/USD weaker, Heading Towards Hourly 200-SMA

The EUR/USD pair trades subdued heading towards early Europe, as the greenback extends previous gains against its major peers in response to the less dovish remarks from Fed Chair Yellen.

EUR/USD: Divergent monetary policy outlooks back in spotlight

Currently, EUR/USD trades -0.14% lower at 1.1362, flirting with daily lows printed at 1.1359 earlier on the day. The main currency pair extends weakness into a second day today as markets continue to weigh the latest more dovish ECB accounts/ minutes in light of Fed Yellen’s less dovish comments delivered after the Wall Street close.

The monetary policy divergence between both the Fed and ECB became more pronounced after the ECB minutes revealed that the governing council discussed steeper rate cut at its March meeting, while at today’s speech, Yellen reiterated that, “Economy is on path for further rate increases" and "US on solid course, not a bubble economy."

Looking ahead, the major will continue to track the broader market sentiment along with the USD moves for further direction as the trading calendar remains data-quiet on the final trading day of this week.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1400 (Apr 1 High/ round number). A break beyond the last, doors will open for a test of 1.1437/55 (Apr 1 & 7 High). On the flip side, the immediate support is placed at 1.1352/50 (1h 200-SMA) below which at 1.1296/1.1300 (20-DMA/ key support) could be tested.

(Market News Provided by FXstreet)

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