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)
