EUR/USD Climbs to Session High of 1.1325 Amid Thin Liquidity
EUR/USD Climbs to Session High of 1.1325 Amid Thin Liquidity
On the first day of a fresh trading week, the EUR/USD
pair is witnessing a quiet and steady session amid low liquidity
conditions on the back of bank holiday in France and Germany in
observance of Whit Monday.
Led by surprisingly stronger monthly retail sales from the US, the pair
on Friday broke through a key support near 1.1350 and extended its
weakness to drop below 1.1300 handle support, also coinciding with
50-day SMA. With only Empire State Manufacturing Index from the US
featuring Monday's economic calendar, the pair is holding its neck
comfortably above 1.1300 mark at session peak level of 1.1325. The
momentum, however, is likely to be muted within a narrow trading range
in absence of any major participation from the Euro-zone.
The 1.1300 support comprises of 50-day SMA and a short-term ascending
trend-line support and hence, a sustained weakness below this confluence
region would open room for further depreciating move in the near-term.
Technical levels to watch
Sustained break below 1.1300 support is likely to drag the pair
immediately towards 1.1260 intermediate support before heading towards
1.1220-15 support area, marking April lows support and also nearing
38.2% Fibonacci retracement level of 1.0522-1.1616 up-move.
On the upside, thin liquidity conditions could provide a short-term
boost to the pair towards an important support break-point now turned
immediate resistance near 1.1350 region. However, any further up-move
might now be capped at 1.1400 round figure mark.
