EUR/USD Analysis: correcting higher but no bullish pressure

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1252

Markets slowly resuming activity after an extended Easter Holiday.
Equities under pressure ahead of the opening, earnings reports awaited.

The EUR/USD pair advanced a handful of pips in ultra-thin market conditions, reaching a daily high of 1.1254, barely 15 pips above its Friday's close. The FX market has seen little action ever since last Thursday as most markets were closed on Easter holidays, with such market's conditions persisting through Monday, European session. US markets will resume activity after the long weekend, although action is expected to remain limited as investors slowly return to their desks and as there are no relevant data scheduled for release. The macroeconomic calendar remained empty in the Union, while the US just released the Chicago Fed Manufacturing Activity Index, which resulted in -0.15 in March, better than the previous -0.31. Pending of release are Existing Home Sales for March, expected to have declined by 2.3%MoM.

Ahead of the opening, US indexes trade in the red, rather affected by earnings reports than dismal market sentiment, as optimism persists about the country's economic health.

As for the technical picture of the pair, the price is currently battling with the 50% retracement of its latest bullish run measured between 1.1183 and 1.1323. In the 4 hours chart, a horizontal 100 SMA converges with the mentioned Fibonacci level, while the 20 SMA maintains a strong bearish slope above it. Technical indicators keep recovering from oversold levels, but advancing modestly within negative levels, falling short of suggesting the pair could continue rallying. The pair would need to firm up above 1.1280, a strong static resistance level, to extend its advance up to the top of the range, while below 1.1200 the yearly low at 1.1175 comes as the next support/bearish target.

Support levels: 1.1200 1.1175 1.1130

Resistance levels: 1.1280 1.1320 1.1350

View Live chart for the EUR/USD

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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