EUR/USD Hits Fresh 3-Week Lows Near 1.1280, EZ CPI in Focus

EUR/USD Hits Fresh 3-Week Lows Near 1.1280, EZ CPI in Focus

18 May 2016, 07:23
Roberto Jacobs
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EUR/USD Hits Fresh 3-Week Lows Near 1.1280, EZ CPI in Focus

The EUR/USD pair is gradually extending its downbeat momentum seen earlier in the Asian session, and now tests session lows as risk-off returns to markets amid broad based US dollar strength.

EUR/USD eyeing a test of 100-DMA at 1.1169

Currently, EUR/USD trades -0.24% lower near fresh session lows struck at 1.1284, unable to resist above 1.13 handle. The main currency pair keeps the offered tone intact and heads further south as the greenback inches closer to two-week tops versus its major competitors, with the USD bulls underpinned by stronger CPI data from the US and expectations of a less dovish Fed minutes document.

Moreover, markets are pricing-in a softer Eurozone CPI reading, with the March consumer price growth in the euro zone seen flat growth on annualized basis. While core figures are expected to tick lower to 0.7% versus 0.8% seen previously.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1300 (round number). A break beyond the last, doors will open for a test at 1.1343/50 (May 16 High/ psychological levels). On the flip side, the immediate support is placed at 1.1271 (Apr 27 Low/ daily S2) below which at 1.1250/44 (daily S3) could be tested.


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