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