EUR/USD Remains Capped by 1.1230 Zone

EUR/USD Remains Capped by 1.1230 Zone

20 May 2016, 14:50
Roberto Jacobs

EUR/USD Remains Capped by 1.1230 Zone

EUR/USD consolidates near daily highs in quiet trading Friday, with the dollar mixed across the board ahead of the G7 meeting.

EUR/USD found support at the 1.1180 area on Thursday but every bounce attempt has remained capped by the 1.1230 region, confining the pair to a phase of consolidation. At time of writing, the pair is trading at 1.1222, up 0.16% on the day but still 0.77% down this week.

On Wednesday, FOMC minutes revealed members consider June rate hike as “likely” if economic conditions warrant, boosting the greenback across the board.

EUR/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.1179 (7-week low, May 19), 1.1152 (100-day SMA), 1.1100 (200-day SMA/psychological level) and 1.1057 (Mar 16 low). On the flip side, resistances line up at 1.1227/29 (May 19 & 20 highs), 1.1315 (50-day SMA/May 18 high) and 1.1356 (20-day SMA).


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