EUR/USD Drops Further Post-EMU Data

EUR/USD Drops Further Post-EMU Data

18 May 2016, 11:56
Roberto Jacobs

EUR/USD Drops Further Post-EMU Data

The shared currency is now accelerating its downside, sending EUR/USD to the 1.1260 area.

EUR/USD weaker on EMU CPI, looks to FOMC

Spot has deflated further after final EMU’s CPI figures for the month of April have matched preliminary readings, with headline consumer prices contracting at an annual pace of 0.2% and Core prices up 0.7% YoY, a tad lower than March’s 0.8% gain.

The pair keeps correcting lower after finally breaching the key support at 1.1300 in early trade, against the backdrop of a broad-based recovery of the greenback ahead of the FOMC minutes (due later in the European evening).

EUR/USD levels to watch

The pair is now retreating 0.38% at 1.1270 and a break below 1.1213 (low Apr.25) would target 1.1148 (100-day sma) en route to 1.1142 (low Mar.24). On the other hand, the initial hurdle aligns at 1.1366 (20-day sma) followed by 1.1448 (high May 11) and finally 1.1615 (2016 high May 3).


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