EUR/USD Stages Short-Lived Bounce Attempt, Turns Back South

EUR/USD Stages Short-Lived Bounce Attempt, Turns Back South

18 May 2016, 15:45
Roberto Jacobs
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EUR/USD Stages Short-Lived Bounce Attempt, Turns Back South

EUR/USD has fallen to fresh monthly lows on Wednesday amid a stronger US dollar, as investors digest yesterday’s strong US CPI and hawkish comments from Fed members.

EUR/USD fell to a low of 1.1255 and even though the pair staged a mild bounce during the European trade, it was short-lived as the 1.1290 zone offered resistance. EUR/USD turned back south and it was last trading around 1.1265, recording a 0.41% loss on the day.

Main attention remains on FOMC meeting minutes to be released at 18:00 GMT as investors wonder whether the Fed is ready to raise rates further as soon as next month or not.

EUR/USD technical levels

As for technical levels, immediate supports are seen at 1.1274 (May 18 low), 1.1255 (Apr 26 low) and 1.1214 (Apr 25 low). On the other hand, resistances could be found at 1.1315 (50-day SMA/May 18 high), 1.1364 (10-day SMA) and 1.1379 (May 13 high).


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