EUR/USD Fails to Resist above 50-DMA, Back to Square One

EUR/USD Fails to Resist above 50-DMA, Back to Square One

16 May 2016, 11:44
Roberto Jacobs
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EUR/USD Fails to Resist above 50-DMA, Back to Square One

A renewed bout of buying interest seen around the EUR appears to wane over the last hour, with the EUR/USD pair reversing a spike to daily highs printed above 50-DMA.

EUR/USD deflates from 1.1330

Currently, EUR/USD trades modestly flat at 1.1316, retracing from fresh session highs posted at 1.1330 some minutes ago. The main currency pair is gradually reversing a part of the gains witnessed since early trades, as the greenback pares losses against its major peers amid holiday-thinned markets.

However, the recovery mode still remains intact as the negative trading sentiment seen on London and French stocks, continue keep the safe-haven bids for the EUR underpinned. The German and Swiss equity markets are closed on account of Whit Monday holiday.

Next in focus for the major remains the sentiment surrounding the US equities and a set of second-tier US economic data, which is expected to virtually have no impact on the major. While the main risk event for EUR/USD for this week is likely to be the FOMC minutes due out on Wednesday.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1351/71 (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.


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