EUR/USD Jumps to Test Tuesday’s High Near 1.1335

EUR/USD Jumps to Test Tuesday’s High Near 1.1335

27 April 2016, 10:34
Roberto Jacobs

EUR/USD Jumps to Test Tuesday’s High Near 1.1335

A sudden bout of buying interest gripped the EUR/USD pair post-European open, with the bulls driving the prices way beyond 1.13 handle.

EUR/USD advances ahead of Fed verdict

Currently, EUR/USD trades +0.24% higher at 1.1326, having posted fresh session highs at 1.1334 in the last hour. The main currency pair found fresh impetus from a shaky start to the European markets as investors remains wary ahead of the much-awaited Fed outcome. In times of uncertainty, markets prefer to hold the safe-havens/ low-yielding currencies such as the EUR, thereby, sending EUR/USD towards Tuesday’s high printed at 1.1339.

Calendar-wise, the second-liner German data came in stronger than expectations, which also lifts the sentiment around the major. While the latest Euro zone money supply data also bettered previous reading and matched expectations (Actual 5.0% vs. 5.0% exp., 4.9% last).

Looking ahead, the major now looks forward to the highly influential FOMC statement, with the main focus on the committee’s language, as markets have already priced-in a no rate hike at today’s meeting.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1334/39 (Daily & 26 High). A break beyond the last, doors will open for a test of 1.1396/1.1400 (Apr 21 High/ round number). On the flip side, the immediate support is placed at 1.1277 (1h 50 & 100-SMA) below which at 1.1232/19 (Apr 14 & 25 Low) could be tested.


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