EUR/USD Mires Near Multi-Week Lows, 1.1200 a Whisker Away

EUR/USD Mires Near Multi-Week Lows, 1.1200 a Whisker Away

19 May 2016, 07:58
Roberto Jacobs
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EUR/USD Mires Near Multi-Week Lows, 1.1200 a Whisker Away

The EUR/USD pair is currently consolidating the downside on 1.12 handle, as the bears take a breather from yesterday’s massive sell-off spurred by surprisingly hawkish FOMC April meeting minutes.

EUR/USD looks vulnerable

Currently, EUR/USD trades modestly flat at 1.1210, flirting with fresh three-week lows struck at 1.1214 in early trades. The main currency pair faded a tepid-bounce from FOMC minutes-led slide near 1.1230 region and reverted towards multi-week troughs, as the US dollar halted its corrective mode and swung back on the bids against its six major competitors, with the bulls still riding higher after the minutes revealed a June Fed hike back on the table.

Overnight, minutes from the FOMC's April 26-27 meeting suggested that the Fed officials considered a June interest rate hike appropriate against a backdrop of improvement in the labour markets and stronger growth and inflation outlook.

With the Fed minutes now behind, focus shifts towards the ECB monetary policy meeting accounts ahead of the US macro data and a couple of speeches from the Fed officials Fischer and Dudley.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1247/50 (1h 20-SMA/ psychological levels). A break beyond the last, doors will open for a test at 1.1278/1.1300 (5-DMA/ round number). On the flip side, the immediate support is placed 1.1200 (key support) below which at 1.1184/73 (daily S1/ 100-DMA) could be tested.


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