EUR/USD Fails Near Monday’s High, Recedes to 1.1320
The EUR/USD pair
is seen paring gains and now slips back below 5-DMA, as the demand for
the US currency is slowly picking-up pace heading into the US CPI
report.
EUR/USD unperturbed by Eurozone trade data
Currently, EUR/USD trades modestly flat at 1.1322, having posted session
highs at 1.1340 post-European open. The main currency pair wiped-out
gains and now consolidates in familiar ranges above 1.13 handle as
markets prefer to hold the US dollar ahead of the US inflation data,
which is expected to tick higher in April and therefore, turn out to USD
positive. The US CPI is projected to rise a 0.4% m/m in April, while
the core figures are expected to rise 0.2% from a month ago.
Further, the major failed to benefit from upbeat Eurozone trade balance
report, with the March figures having bettered expectations. Eurozone
March trade balance came in at +EUR22.3bln vs +EUR22.0bln expected.
Meanwhile, markets digest the latest numbers from the Euroland amid a
slight deterioration experienced in the risk conditions, as both the oil
and stocks erases gains.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1343/50 (May 16 High/ psychological levels). 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.
