EUR/USD re-tests offers near 1.2285 post-Sentix
|- Dismal Eurozone Sentix figures add to the weight on the EUR.
- Positive European equities, higher Treasury yields cap any recovery attempts.
The EUR/USD pair reversed a sharp dip to 1.2260 levels and made headways back to test the 1.23 handle, but in vain, as the bears continue to guard the last amid persisting risk-on trades and the Eurozone Sentix Investor Confidence disappointment. The Eurozone April Sentix investor confidence arrived at 19.6 versus 20.8 expected.
Moreover, rising Treasury yields amid the divergent monetary policy outlooks between the Fed and ECB, with attention shifting towards this Wednesday’s FOMC minutes, also keep the recovery in check. Additionally, the funding currency, the EUR, tends to suffer amid risk-on market profile, as reflected by the rally in the European equities and higher oil prices.
Focus now remains on the ECB Draghi’s speech and US inflation data due in the first half of this week for fresh trading opportunities. In the meantime, the spot will continue to get influenced by the risk trends, in the wake of the ongoing US-China trade spat.
EUR/USD levels to watch
According to Valeria Bednarik, Chief Analysts at FXStreet, “the short-term technical picture is neutral, given that in the 4 hours chart, the pair is barely holding above a flat 20 SMA, while technical indicators lack directional strength around their mid-lines. Early attempts to advance were contained by selling interest around 1.2290, making of the level the immediate resistance, followed by 1.2335 and 1.2370, although chances of a rally up to this last are pretty much null. Supports, on the other hand, are located at 1.2250 and 1.2215, this last, the low set last week.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.