EUR/USD Testing Highs Near 1.1360, German CPI Eyed

EUR/USD Testing Highs Near 1.1360, German CPI Eyed

28 April 2016, 11:58
Roberto Jacobs

EUR/USD Testing Highs Near 1.1360, German CPI Eyed

The risk-off sentiment intensified in the European session, lifting EUR/USD from near 1.1340 region back towards daily highs heading into the nationwide German CPI report.

EUR/USD eyes 1.1400

Currently, EUR/USD trades +0.32% higher at 1.1359, trying another attempt to surpass daily highs reached at 1.1368 earlier this session. The main currency pair is consolidating the upside, after having extending its recent upward rally into a fourth day today, as investors seek the safe-haven euro amid risk-off market profile triggered by BOJ’s disappointing monetary policy outcome.

Moreover, the US dollar continues to remain undermined across the board, following Fed’s failure to hint at probable June/July rate hike, while a massive sell-off in the USD/JPY post-BOJ decision also collaborates to the broad based USD weakness. At the timing of writing, the USD index slides -0.67% to 93.73 levels, near daily lows.

Meanwhile, upbeat German employment data along with improved Eurozone economic sentiment also provided fresh boost to the EUR. Next in focus for the major remains the German final CPI and US advance GDP data, which will provide further momentum.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1396/1.1400 (Apr 21 High/ round number). A break beyond the last, doors will open for a test of 1.1450 (psychological levels). On the flip side, the immediate support is placed at 1.1281/73 (1h 100-SMA/ post-FOMC lows) below which at 1.1232/19 (Apr 14 & 25 Low) could be tested.


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