EUR/USD Consolidates in a Directionless Trading Session

EUR/USD Consolidates in a Directionless Trading Session

12 May 2016, 08:17
Roberto Jacobs

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.


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