EUR/USD Consolidates in a Directionless Trading Session
As risk-aversion strikes back, the EUR/USD pair is moving in a narrow trading band, consolidating Wednesday's gains ahead of the BoE's Super Thursday.
In the near-term, the pair remains directionless as traders continue to
look for a persistent trend. On Wednesday, the pair snapped its six-days
of losing streak and decisively moved back above 1.1400 handle. In
absence of any major market-moving releases, traders now await the
release of US monthly retail sales data on Friday, which might now be an
immediate fundamental trigger for the pair.
From technical perspective, the pair has rebounded from an important
support confluence near 1.1360 level. Hence, a follow through strength
above 1.1445-50 immediate resistance would open room or further
near-term appreciating move for the pair.
Technical levels to watch
A convincing break through 1.1445-50 horizontal resistance seems to lift
the pair beyond 1.1500 handle resistance, towards testing its next
major resistance near 1.1525-30 area. A follow through momentum could
further get extended towards the very important 1.1600 handle.
Conversely, slide back below 1.1400 handle might continue to find
support near 1.1360 area, which if broken convincingly should open room
for an immediate test of 1.1300 round figure mark before extending the
weakness towards April lows support near 1.1220-15 area.
