EUR/USD: Bulls Capitalize on USD Weakness, 1.14 Attack Looms...

EUR/USD: Bulls Capitalize on USD Weakness, 1.14 Attack Looms...

29 April 2016, 08:56
Roberto Jacobs
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EUR/USD: Bulls Capitalize on USD Weakness, 1.14 Attack Looms...

EUR/USD is easing modestly off 1.14 vicinity, which was nearly tested ahead of the European open, before lower-than-expected German retail sales, a bid tone in German 10-year bonds and a slight reduction in the VIX added some downward pressure to the pair, last at 1.1384.

Eurozone, US data next focus ahead of the weekend

While stronger economic data from the Eurozone allowed a minor upside day for the Euro on Thursday, assisted by USD broad-based weakness, even on a decent US GDP read, today's main focus will be on Q1 Eurozone GDP and April CPI. As Kathy Lien, Co-Founder at BK Asset Management, notes, "growth is expected to have accelerated in the first 3 months of the year but if that fails to be true, euro will give up its gains."

In the US, Kathy adds, "personal income, spending, Chicago PMI and revisions to the University of Michigan consumer sentiment report are scheduled for release on Friday but none of these numbers are significant enough to turn the dollar around."

EUR/USD technicals

Haresh Menghani, Market Analyst at FXStreet, notes that "a break-through this 1.1400 resistance zone might is likely to accelerate the gains immediately towards April highs resistance near 1.1460-65 zone. Alternatively, inability to conquer a strong resistance and a subsequent reversal might drag the pair back towards 1.1360-50 support, which if broken could lead to a further downside pressure towards testing trend-channel support near 1.1330."


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