EUR/USD Rejected at 5-DMA, Back Below 1.13 ahead of ECB

EUR/USD Rejected at 5-DMA, Back Below 1.13 ahead of ECB

21 April 2016, 10:56
Roberto Jacobs
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EUR/USD Rejected at 5-DMA, Back Below 1.13 ahead of ECB

The EUR/USD pair turned back lower below 1.13 handle, reversing a spike to daily highs post-European open, as focus now remains on the ECB policy decision due later this session.

EUR/USD tests 5-DMA, then retreats

Currently, EUR/USD trades modestly flat at 1.1292, failing to sustain at daily highs printed at 1.1311, where the 5-DMA resistance intersects. The euro-dollar pair moves back and forth in a 25-pips slim, now consolidating the latest spike heading into the ECB monetary policy decision.

Moreover, lacklustre trading in the US dollar against its major competitors, also fails to provide any direction to the major. Amid a data-empty EUR calendar, all eyes remain on the key ECB decision followed by ECB President Draghi’s presser, which will provide fresh insights on the old continents monetary policy outlook, while massive volatility could be spurred followed the event, especially if the central bank offers fresh surprises at its meeting today.

EUR/USD Technical Levels


In terms of technicals, the pair finds the immediate resistance at 1.1350/52 (round number/ 20-DMA). A break beyond the last, doors will open for a test of 1.1393/1.1400 (Apr 13 High/ round number). On the flip side, the immediate support is placed at 1.1272/64 (Apr 18 & 13 Low) below which at 1.1201 (50-DMA) could be tested.


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