EUR/USD Bears in Control, Targets 1.1450 Ahead of PMIs

EUR/USD Bears in Control, Targets 1.1450 Ahead of PMIs

4 May 2016, 06:44
Roberto Jacobs

EUR/USD Bears in Control, Targets 1.1450 Ahead of PMIs

The selling pressure around the EUR/USD pair intensifies in a relatively quiet Asian session, with the greenback extending its rebound against its major peers amid resurgence of Fed rate hike talks.

EUR/USD down almost 120-pips from 9-month peaks

Currently, EUR/USD trades -0.11% lower at 1.1485, having failed once again to sustain above 1.15 handle. A renewed bout of buying interest seen around the US dollar versus its major competitors this session sent the main currency pair further into the red below 1.15 handle. The USD index trades around fresh three-day highs scored at 93.23, up 0.15% on the day.

On Tuesday, hawkish comments from Fed officials Lockhart and Williams over Fed rate hikes prospects this year bolstered the USD bulls and led to a massive turnaround in the US dollar across the board, staging a solid rebound from fresh sixteen-month lows.

Looking ahead, we have an eventful EUR calendar today, with a raft of final services PMI on the cards from across the Euro area economies. While markets will also closely eye the US employment data along with the ISM services PMI for further updates on the major.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1509/16 (daily high/ 1h 50-SMA). A break beyond the last, doors will open for a test of 1.1536/50 (daily pivot/ psychological levels). On the flip side, the immediate support is placed at 1.1450 (1h 100-SMA) below which at 1.1400/1.1390 (key level/ 10-DMA) could be tested.


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