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The  EUR/USD pair soared to a fresh year high of 1.1461 at the beginning of the London session, but the rally was quickly faded as the pair failed to break above the major static resistance level. There was no catalyst behind the advance, beyond a continued improvement in market sentiment, as oil maintains its latest strength and Asian shares edged sharply higher. German latest inflation reviews matched preliminary readings, up by 0.3% in March 2016 compared to March 2015. Monthly basis, it rose by 0.8%. 

The US session will see several FED's speakers hitting the wires, including Philadelphia Fed President Harker, San Francisco Fed President Williams and Richmond Fed President Lacker, all well-known hawks. Nevertheless, chances of a hawkish rhetoric boosting the greenback are quite limited. 

View the Live chart of the EUR/USD


From a technical point of view, the 4 hours chart presents a mild positive tone, with limited upward momentum coming from technical readings as the price remains within its latest range. So far, bulls maintain control, but they may get discouraged after repeated failure around the mentioned resistance, and finally take some profits out, triggering a downward corrective move. 

Quoting around 1.1420, the immediate resistance comes at the 1.1460 daily high, followed by 1.1500 first, and 1.1550 later on the day. The immediate support comes at 1.1380, whilst the next stands at the base of the latest range at 1.1330. It would take a break below this last to confirm a deeper downward corrective movement towards 1.1280 first, and 1.1245 later on the day.

Latest updates on the EUR/USD Forecast


 

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