EUR/USD Fails Near Monday’s High, Recedes to 1.1320

EUR/USD Fails Near Monday’s High, Recedes to 1.1320

17 May 2016, 13:05
Roberto Jacobs
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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.


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