EUR/USD: a steep corrective movement on the horizon? - FXStreet

EUR/USD: a steep corrective movement on the horizon? - FXStreet

12 April 2016, 23:40
Vasilii Apostolidi
Valeria Bednarik, chief analyst at FXStreet noted that the American dollar retained the weak tone against most of its major rivals during the Asian session, with most pairs confined to tight ranges in response to a light economic calendar ever since the week started. 

Key Quotes:

"But things got more interesting during the London session, when the soft opening of local share markets sent the EUR/USD pair up to a fresh year high of 1.1461, and the GBP/USD pair beyond 1.4300, this last on the back of strong local inflation figures. The greenback was buoyed early in the US session, rallying particularly against the EUR and the JPY, both weaker amid improved market's sentiment. 

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On the data front, Germany released its final CPI readings for March, which matched preliminary readings and therefore failed to affect the pair. German inflation rose 0.3% compared to a year before, while monthly basis, it was up by 0.8%. In the US, the March NFIB survey showed that the slowdown continued for small firms, printing 92.6 against previous 92.9 and a 93.9 expected, but FED's hawks underpinned temporarily the USD, by saying that the central bank could raise rates more than twice this year particularly if inflation rises aggressively. 

The EUR/USD pair bounced from a daily low set at 1.1344, but held below the 1.1400 figure by the end of the day, closing in the red, but within its latest range. Bulls may begin to feel discouraged given that the pair retreated once again from the major resistance level around 1.1460, and result in a steeper downward corrective movement during the upcoming sessions, although the pair needs to extend beyond 1.1330, the base of its latest range, to confirm such decline."
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