EUR/USD Offered Near Hourly 50-SMA, Back to 1.1250
The bulls appear to face exhaustion over the last hour, stalling the rebound in EUR/USD near hourly 50-SMA at 1.1270, despite negative European equities and oil prices.
EUR/USD ignores weaker Ifo
Currently,
EUR/USD trades 0.25% higher at 1.1252, having posted fresh session
highs of 1.1263 post-Ifo surveys release. The main currency pair stalled
its recovery from last Friday’s sell-off in the last hour, and now
reverts to familiar range around the mid-point of 1.12 handle as
risk-off moods appear to cool-off amid a minor-recovery in the European
stocks.
However, the downside remains capped on the back of a
broadly lower US dollar as markets resort to profit-taking on the USD
longs heading into the much-awaited FOMC policy decision due Wednesday.
On
the data front, we had the German Business Climate Index, which
worsened slightly to 106.6 points in April, from 106.7 before, while the
market had forecast a rise to 107.1 points. The Ifo Current Assessment
Index hit 113.2 points, after 113.8, while the Ifo Expectations gauge
booked 100.4 points, following March's 100, coming in weaker than 100.9
points expected.
Looking towards the North American session, the
new home sales data from the US will be closely eyed for fresh
incentives on the major.
EUR/USD Technical Levels
In
terms of technicals, the pair finds the immediate resistance at
1.1276/79 (1h 50-SMA/ 10-DMA). A break beyond the last, doors will open
for a test of 1.1300 (round number). On the flip side, the immediate
support is placed at 1.1222/18 (daily S1 & low) below which at
1.1189 (50-DMA) could be tested.
