EUR/USD Climbs to Session High of 1.1325 Amid Thin Liquidity

EUR/USD Climbs to Session High of 1.1325 Amid Thin Liquidity

16 May 2016, 11:21
Roberto Jacobs
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EUR/USD Climbs to Session High of 1.1325 Amid Thin Liquidity

On the first day of a fresh trading week, the EUR/USD pair is witnessing a quiet and steady session amid low liquidity conditions on the back of bank holiday in France and Germany in observance of Whit Monday.

Led by surprisingly stronger monthly retail sales from the US, the pair on Friday broke through a key support near 1.1350 and extended its weakness to drop below 1.1300 handle support, also coinciding with 50-day SMA. With only Empire State Manufacturing Index from the US featuring Monday's economic calendar, the pair is holding its neck comfortably above 1.1300 mark at session peak level of 1.1325. The momentum, however, is likely to be muted within a narrow trading range in absence of any major participation from the Euro-zone.

The 1.1300 support comprises of 50-day SMA and a short-term ascending trend-line support and hence, a sustained weakness below this confluence region would open room for further depreciating move in the near-term.

Technical levels to watch

Sustained break below 1.1300 support is likely to drag the pair immediately towards 1.1260 intermediate support before heading towards 1.1220-15 support area, marking April lows support and also nearing 38.2% Fibonacci retracement level of 1.0522-1.1616 up-move.

On the upside, thin liquidity conditions could provide a short-term boost to the pair towards an important support break-point now turned immediate resistance near 1.1350 region. However, any further up-move might now be capped at 1.1400 round figure mark.


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