EUR/USD Stuck in Tight Range Near 1.1200

EUR/USD Stuck in Tight Range Near 1.1200

20 May 2016, 07:26
Roberto Jacobs
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EUR/USD Stuck in Tight Range Near 1.1200

The EUR/USD pair traded around a flat-line almost through the Asian session, and now flirts with 1.12 handle as we head towards early Europe.

EUR/USD finds support above 100-DMA at 1.1175

Currently, EUR/USD trades dead flat at 1.1202, easing-off session highs reached at 1.1210 earlier in Asia. The main currency pair consolidates the downside over the past few hours and hovers in a 15-pips narrow range as markets await fresh impetus for the next leg lower.

The risk remains to the downside for the euro-dollar pair as the US dollar remains in demand amid June Fed rate hike chatter, which brings monetary policy divergence between both continents back in the spotlight.

Meanwhile, markets await fresh cues from the G7 meeting as also from the sentiment on the global equities to gauge further moves in EUR/USD. On the data front, the EUR calendar remains data-dry, while the US docket offers housing data alongside Fed speak.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1230/51 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open for a test at 1.1275/1.1300 (1h 100-SMA/ round number). On the flip side, the immediate support is placed 1.118/75 (May 19 Low/ 100-DMA) below which at 1.1106 (200-DMA) could be tested.


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