EUR/USD Recovers Sharply to 1.1350 from Sub-1.1300 Level
As the US trading session gets underway, fresh bids just below 1.1300 handle boosted the EUR/USD pair to the vicinity of 1.1350 level.
The pair initially dropped below 1.1300 level on slightly upbeat US CPI
and mixed housing market data but managed to recover sharply despite of
better-than-expected US industrial production and capacity utilization
rate for the month of April.
With the US CPI release out of the way, investors now shift focus back
to the looming deflationary concerns in the Euro-zone that would be
reflected from the final Euro-zone CPI reading slated for release on
Wednesday.
From technical perspective, the pair has maintained its Friday's range
and has held an important support confluence near 1.1300 round figure
mark. Only a decisive break through this important support would now
open room for further depreciating move for the pair.
Technical levels to watch
On a sustained break below 1.1300 level, the pair would turn vulnerable
to extend its decline, initially towards April lows support near
1.1220-15 area and eventually towards 100-day SMA support near 1.1150
region.
Alternatively, bounce from the 1.1300 important confluence region and a
follow through strength beyond 1.1345-50 region might assist the pair
further towards testing an important support break-point turned
immediate strong resistance near 1.1365-70 region (20-day SMA).
