EUR/USD Slips Below 1.1400 Handle ahead of BOE

EUR/USD Slips Below 1.1400 Handle ahead of BOE

12 May 2016, 13:01
Roberto Jacobs

EUR/USD Slips Below 1.1400 Handle ahead of BOE

The EUR/USD pair extended its weakness and has now dropped back below 1.1400 handle just ahead of BOE Super Thursday.

The US Dollar extended its bid tone through the European trading session on Thursday, resuming its upward trajectory after a halt to its six-day winning streak on Wednesday. The shared currency came under selling pressure after Euro-zone industrial production unexpectedly contracted during March. Economists were expecting a nominal growth of 0.1%.

The key even risk for today would be the BOE Super Thursday, which is expected to trigger some volatile moves in the EUR/GBP cross, eventually influencing the EUR/USD pair as well.

From technical perspective, the pair is reversing from an intermediate resistance near 1.1445-50 region and a follow through selling pressure might continue to find support near 1.1365-60 area. A clear break below 1.1360 support would now open room for further depreciation for the pair in the near-term.

Technical levels to watch

Below 1.1365-60 immediate confluence support, the pair seems to accelerate the fall immediately towards a short-term ascending trend-channel support near 1.1300 round figure mark.

Meanwhile on the upside, momentum above 1.1445-50 horizontal resistance should now assist the pair beyond 1.1500 psychological mark, towards testing its next major resistance near 1.1530-35 region.


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