EUR/USD Side-Lined Above 1.1400, Awaits German Data

EUR/USD Side-Lined Above 1.1400, Awaits German Data

9 May 2016, 06:36
Roberto Jacobs

EUR/USD Side-Lined Above 1.1400, Awaits German Data

Having bottomed out at 1.1380, the shared currency keeps its recovery mode intact against its American counterpart in late-Asia, taking EUR/USD above 1.14 handle.

EUR/USD at six-day lows

Currently, EUR/USD trades modestly flat at fresh session highs of 1.1408, making another attempt towards 1.15 handle. The main currency is seen consolidating the downside as dust settles over the NFP aftermath, with the major catching fresh bid tone in recent dealings amid broad based US dollar retreat.

The greenback wiped-out gains against its major competitors and now trades muted, underpinning the recovery in EUR/USD. Moreover, mixed market sentiment amid higher oil prices and subdued Asian equities also lifts the safe-haven bids for the EUR.

Meanwhile, focus turns towards the German factory orders data amid a data-dry trading calendar today. Besides the Euro group meetings will be closely watched for any news on EU referendum ahead of the US LMCI release.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1427/38 (1h 200-SMA/ 10-DMA). A break beyond the last, doors will open for a test of 1.1465/79 (1h 100-SMA/ May 6 High). On the flip side, the immediate support is placed at 1.1386/80 (May 5 & Daily Low) below which at 1.1350/33 (psychological levels/ Apr 29 Low) could be tested.


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