EUR/USD: easing within range, profit taking can fuel the decline
|EUR/USD Current price: 1.1180
The EUR/USD pair traded some 20 pips either side of the 1.1200 figure for most of the day, retaining a neutral stance ahead of US data release, and refusing to react to the ongoing risk-averse sentiment triggered by the OPEC on Wednesday, and the sharp decline in local share markets. US second release of Q1 GDP figures came in better-than-expected at 1.2% from the initial estimate of 0.7% and forecasted 0.9%. April Durable Goods Orders came also above expected, falling just by 0.7% against expectations of a 1.4% decline, although the core reading was worst-than-expected, down by 0.4% against expectations of a 0.4% advance.
The pair eased with US mixed data but so far holds within its early week's range. The short term picture has turned bearish ahead of Wall Street's opening, with the 4 hours chart showing the price accelerating below a modestly bearish 20 SMA, and technical indicators now heading south, but within neutral territory. The immediate support comes at 1.1160, and a deeper correction could be expected on a break below it, as the long weekend ahead favors some profit taking, although buying interest will likely resurge on an approach to 1.1080.
Support levels: 1.1160 1.1120 1.1080
Resistance levels: 1.1220 1.1260 1.1295
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