EUR/USD analysis: bulls winning the 1.1300 battle

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1334

Dollar self-weakness keeping the pair up, as the market still lacks a reason to buy the EUR.
Mixed US data and Pound strength behind the latest EUR's advance.

The EUR/USD pair extended its weekly advance up to 1.1333, up for a fourth consecutive day but with the shared currency still lacking life of its own. The advance was the result of broad dollar's weakness and renewed demand for the Sterling following May's deal failure at the Parliament yesterday, in the hopes the UK will find its way on avoiding a hard-Brexit. In the data front, the EU released Industrial Production for January, which rose monthly basis by 1.4%, while the yearly reading presented a 1.1% decline, both beating market's expectations. In the US, inflation at factory levels increased by less-than-anticipated in February, while January Goods Orders were better-than-expected up by 0.4% vs. a 0.5% decline expected. Orders ex-transportation decreased by 0.1%, while Nondefense ex-aircraft increased by 0.8%. The greenback was unable to gather an advantage, pressured by a nice comeback in Wall Street which kept government bond yields hovering near weekly lows.

This Thursday, Germany will release February inflation, seen unchanged from preliminary estimates, while the US will offer the usual weekly unemployment claim figures and January New Home Sales.

The pair heads into the Asian opening trading just above the 61.8% retracement of the 1.1419/1.1175 decline at around 1.1330, retaining a positive stance in the short-term despite the limited upward momentum. In the 4 hours chart, the pair remains above a bullish 20 SMA which now stands around the 38.2% retracement of the mentioned slide. Technical indicators extended their consolidative phase well above their mid-lines before resuming their advances, now nearing overbought territory. Further gains seem now likely, with the immediate resistance at 1.1375.

Support levels: 1.1300 1.1265 1.1220

Resistance levels: 1.1375 1.1410 1.1445

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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