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.
