EUR/USD Under Pressure Below 1.1400 in Early Europe

EUR/USD Under Pressure Below 1.1400 in Early Europe

10 May 2016, 08:03
Roberto Jacobs
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EUR/USD Under Pressure Below 1.1400 in Early Europe

The EUR/USD pair keeps pushing lower and now hovers near fresh weekly lows, having failed yet again to sustain above 1.14 handle.

EUR/USD capped below 1.1400

Currently, EUR/USD trades -0.07% lower at 1.1377, flirting with fresh one-week lows reached at 1.1371 in the last hour. The shared currency remains under mild bearish pressure against its American peer as we progress towards early Europe, with the safe-haven appeal for EUR/USD getting negatively affected by the persistent risk-on moods, spurred by a touch better Chinese CPI and PPI data releases.

Moreover, the US dollar extends its winning streak versus its major competitors for the sixth straight session this Tuesday, having completely ignored the latest not-so impressive US employment data. The US dollar index edges +0.8% higher at 94.22, hovering close to fresh two-week tops printed at 94.25.

Meanwhile, markets will track the sentiment surrounding the oil and stock markets, as the focus remains on the Fed speak and another jobs data from the US.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1437/39 (1h 200-SMA/ 10-DMA). A break beyond the last, doors will open for a test of 1.1467/79 (20-DMA/ May 6 High). On the flip side, the immediate support is placed at 1.1350/33 (psychological levels/ Apr 29 Low) below which at 1.1300/1.1298 (round number/ 50-DMA) could be tested.


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