EUR/USD: Bulls Making Headway Towards 1.1300?

EUR/USD: Bulls Making Headway Towards 1.1300?

26 April 2016, 10:31
Roberto Jacobs
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EUR/USD: Bulls Making Headway Towards 1.1300?

EUR/USD found fresh bids just below 5-DMA and from there rebounded sharply to daily tops, finally taking-out strong 10-DMA resistance.

EUR/USD firmer, but still below 1.1300

Currently, EUR/USD trades +0.14% higher at 1.1284, testing highs reached at 1.1285 in the last hour. The main currency pair consolidates near highs as the upside appear to lose steam on the back of rebounding European stocks, which triggered a renewed risk-on wave and diminished the bids for the safe-haven EUR.

More so, fresh selling interest seen around the US dollar versus six major currencies also collaborates to the upbeat sentiment surrounding EUR/USD. The US dollar index, which measures the relative strength of the greenback against a basket of six major currencies, edges -0.20% lower to trade near session lows of 94.54 levels.

Later today, the main risk event for the major is expected to be the US durable goods data, which is likely to pose a rebound last month and hence, could trigger fresh USD rally, weighing negatively on euro-dollar pair.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1300 (round number). A break beyond the last, doors will open for a test of 1.1334/42 (Apr 18 High/ daily R3). On the flip side, the immediate support is placed at 1.1261/50 (5-DMA/ psychological levels) below which at 1.1234/19 (daily S1 & Apr 25 Low) could be tested.


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