EUR/USD Attacks 1.1400, Ignores Negative European Equities
The EUR/USD pair
came under fresh selling pressure over the last hour, and now inches
closer towards 1.14 handle as the US dollar picked-up strength against
its major peers in an otherwise calm European session.
EUR/USD rejected at 10-DMA
Currently, EUR/USD trades 0.16% lower at fresh session lows of 1.1405, fighting hard to resist above 1.14 handle. Having consolidated around 1.1425 region almost through Asia, the EUR/USD finally broke to the downside amid increased demand for the US dollar amid a data-light European session.
The main currency pair remains under pressure as markets await the European Parliament will vote today, on a non-binding resolution to determine whether the EU should grant China market economy status (MES).
Moreover, the upcoming BOE policy decision combined with the inflation report is expected to have major impact on the EUR/GBP cross, eventually influencing the EUR/USD pair.
Meanwhile, expectations of a better Euro zone industrial output print also fails to keep the sentiment underpinned. Industrial production for March is expected to improve from -0.8% to 0.0% m/m, while on a yearly basis it should accelerate a notch to 0.9%.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1430/43 (10-DMA/ 1h 200-SMA). A break beyond the last, doors will open for a test of 1.1487 (daily R2). On the flip side, the immediate support is placed at 1.1350/33 (psychological levels/ Apr 29 Low) below which at 1.1314/00 (50-DMA/ round number) could be tested.