EUR/USD analysis: steady near 1.2500 ahead of US opening
|EUR/USD Current price: 1.2482
- US mixed data fails to back the greenback.
- Bulls aiming to push the pair higher, through 1.2536.
The EUR/USD pair hit a daily high of 1.2510 ahead of London opening, from where it entered a consolidative stage, pulling back modestly on the back of the EU trade balance, which recorded a €25.4B surplus in trade in goods with the rest of the world in December 2017, compared with €27.6B a year earlier, below market's forecast of €30.2B. US data just released came in mixed, as the NY Empire State manufacturing index fell to 13.1 from the previous 17.7, missing also market's expectations of 17.5. Producer prices surged by more than expected in January, with the monthly reading up 0.4% and inflation at factory levels advancing 2.2% YoY. Weekly unemployment claims matched expectations with 230K for the week ended February 9, while the Philly manufacturing index surged to 25.8 from the previous 22.2. Still pending of release in the US are January Capacity Utilization and Industrial Production, and the February NAHB Housing Market index.
The pair hovers around the 1.2480 level, and maintains its positive stance, as in the 4 hours chart, the Momentum indicator eases modestly from its highs, but the RSI indicator aims to regain the upside, currently around 67, while the 20 SMA keeps advancing below the 100 SMA, and is about to cross it to the upside, both in the 1.2390 region. The pair needs to surpass its daily high to be able to extend its gains towards 1.2536, the multi-year high set last January, with a break above the level favoring additional gains up to 1.2560. Market players are waiting for US equities to set the tone again, with extended gains in stocks probably backing further dollar's losses.
Support levels: 1.2440 1.2400 1.2365
Resistance levels: 1.2510 1.2535 1.3560
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