EUR/USD Eases-Off Fresh 2016 Highs, Focus on PMIs, Draghi

EUR/USD Eases-Off Fresh 2016 Highs, Focus on PMIs, Draghi

2 May 2016, 05:47
Roberto Jacobs
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EUR/USD Eases-Off Fresh 2016 Highs, Focus on PMIs, Draghi

The risk conditions improved over the last hours and weighed somewhat on the safe-haven euro, dragging EUR/USD lower from fresh multi-month tops.

EUR/USD supported at daily pivot (1.1460)

Currently, EUR/USD trades +0.10% higher at 1.1466, retreating from fresh nine-month highs reached at 1.1481 post-Tokyo open. The main currency pair paused its five-day rally and now consolidates the upside as the risk sentiment improves amid stabilizing Asian indices.

Although off-highs, the major remains better bid as the US dollar remains broadly weak as the dovish FOMC statement still weighs on the sentiment around the greenback. At the timing of writing, the USD index trades marginally lower at to 92.97 levels, near eight-month lows.

Earlier this session, the EUR/USD pair jumped to the highest levels since August 2015 as a renewed bout of risk-aversion gripped markets after the Japanese stocks opened with a 4% bearish gap, which boosted the safe-haven currencies such as the EUR.

Next in focus for the major remains a string of final manufacturing readings from across the Euro area economies ahead of ECB’s Draghi’s speech scheduled later in the NY session. While US docket offers ISM manufacturing PMI report, which may have significant impact on the USD moves.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1481 (nine-month highs). A break beyond the last, doors will open for a test of 1.1500 (psychological levels). On the flip side, the immediate support is placed at 1.1450/41 (1h 20-SMA) below which at 1.1412/1.1388 (5-DMA/ 1h 50-SMA) could be tested.


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