EUR/USD: Offered Near 50-DMA, but Keeps 1.1300
The overnight recovery in EUR/USD
failed once again near 1.1320 region in early dealings, sending the
major back near 1.13 handle, where it spent last few hours
consolidating.
EUR/USD lacks drivers amid holiday-thinned trading
Currently, EUR/USD trades modestly lower at 1.1307, having found solid
bids around 1.1304/03 band. The main currency pair is seen consolidating
the recovery and remains in a flat-lining amid a lack of fresh
catalysts as most major European markets are closed today in observance
of Whit Monday holiday.
However, the recovery looks fragile as markets continue to cheer the
upbeat retail sales data and consumer sentiment from the US released
last Friday, which keeps the USD underpinned at the expense of the
common currency. Both the total retail sales and core figures rebounded
in April and also bettered expectations, providing the much-needed
impetus to the US economic recovery.
Moving on, in absence of any economic news from the Euroland, attention
turns to the US calendar, with the regional manufacturing index and NAHB
housing market index on the cards for fresh incentives. However, the
main risk events for the major remain the CPI figures from both
continents, while the FOMC meeting minutes will also grab the eyeballs
in the week ahead.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at
1.1347/69 (5 & 10-DMA). A break beyond the last, doors will open for
a test of 1.1400 (round number). On the flip side, the immediate
support is placed at 1.1300 (key support) below which at 1.1281/71 (May
13 & Apr 29 Low) could be tested.
