EUR/USD analysis: bulls paused, but still leading the way
|EUR/USD Current price: 1.0746
Major pairs closed the day little changed, as a Japanese holiday and a light macroeconomic calendar kept investors in cautious mode. The dollar recovered from an early slide, underpinned by news that the Brexit has an official date: March 29th. Nevertheless, the greenback retains the week tone triggered last week by the US Fed, settling against the EUR at 1.0738. There were some minor releases in Europe, including wage growth, which increased in the last quarter of 2016 to 1.6% from a previous downwardly revised 1.4%, a sign that underlying price pressures are still weak in the region. Also, Germany released its February PPI data, which came in as expected, up 0.2% in February when compared to the previous month, and by 3.1% yearly basis, beating expectations of a 2.9% advance. In the US, Fed's Evans repeated what the market already knew that three hikes are possible for this year as policy makers are confident on inflation going up.
US President Trump is set to speak at a rally at the Kentucky Exposition Center, in Louisville at the beginning of the Asian session, but the macroeconomic calendar will remain scarce at both shores of the Atlantic on Tuesday.
From a technical point of view, the intraday movement seems barely corrective, as the price held above the immediate short term support at 1.0730, and the 4 hours chart shows that the price is a few pips above a bullish 20 SMA, although technical indicators head south within positive territory, with the Momentum about to cross its mid-line towards the downside. It would take a break below 1.0700 however, to confirm a downward move, while only beyond 1.0785, the pair will be able to regain its upward strength.
Support levels: 1.0730 1.0700 1.0660
Resistance levels: 1.0785 1.0820 1.0850
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