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.
