EUR/USD Breaks 1.14 Handle, Battle to Accept Prices Above

EUR/USD Breaks 1.14 Handle, Battle to Accept Prices Above

29 April 2016, 09:36
Roberto Jacobs
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EUR/USD Breaks 1.14 Handle, Battle to Accept Prices Above

EUR/USD has taken off at the London open, breaking the 1.14 handle decisively, which has resulted in a new day high of 1.1415, with focus now on the next target for the bulls at 1.1450, should they manage to hold price above the 1.14 in the coming hours.

Open interest up in the 6E contract, bodes well for bulls

As in the case of the Sterling, which saw a strong rise in open interest, same applies on the Euro (6E contract), although the increase was a bit more modest. Preliminary data from the CME Group shows that futures traders added 2.3k new contracts yesterday, suggesting that the rally seen continues to carry decent momentum for a continuation. Key focus now is the release of the European GDP and CPI data, which should inject further volatility.

EUR/USD key levels

Technically, EUR/USD needs now to find acceptance above the 1.14 handle in order to extend gains towards the 1.1450 vicinity, which if broken, will then expose the major psychological level of 1.15. On the downside, failure to hold onto gains may represent a setback for buyers, which may try to re-engage at lower prices, in line with the overall bull trend, starting from 1.1375 down towards 1.1350.


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