EUR/USD Fades the Spike to 1.1400

EUR/USD Fades the Spike to 1.1400

10 May 2016, 12:26
Roberto Jacobs

EUR/USD Fades the Spike to 1.1400

The shared currency is now eroding the recent advance to session tops near 1.1400 the figure vs. the dollar, with EUR/USD now returning to the 1.1385/80 band.

EUR/USD looking for catalysts

The pair is extending its sideline theme around the 1.1400 handle for the time being amidst lack of of relevant drivers and scarce volatility. In the meantime, the upside in the greenback seems to have lost some vigour during the European morning, although it remains in the upper end of the recent range when tracked by the US Dollar Index.

In the data space, German trade surplus has surpassed estimates in March, while Industrial Production has contracted more than initially expected during the same period.

Across the pond, US NFIB Business Optimism index is due followed by the API’s weekly report on US crude stockpiles.

EUR/USD levels to watch

The pair is now up 0.04 at 1.1387 and a break above 1.1615 (2016 high May 3) would open the door to 1.1713 (high Aug.24 2015) and finally 1.2110 (2015 high Jan.2). On the other hand, the immediate support lines up at 1.1361 (20-day sma) followed by 1.1249 (55-day sma) and finally 1.1213 (low Apr.25).


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