EUR/USD analysis: correcting lower, still directionless

Valeria Bednarik FXStreet

EUR/USD Current price: 1.2366

EU business confidence deteriorated further in April.
US housing sector giving first signs of improvement.

The EUR/USD pair traded as high as 1.2413 before turning lower, as the dollar managed to correct part of its latest losses, while data coming from the EU was mostly disappointing. The German ZEW survey showed that the economic sentiment shrunk further, printing -8.2 in April for the country, well below the previous 5.1, while for the whole EU, the index resulted at 1.9 from a previous 13.4. US data just published is dollar supportive, as Housing Starts were 1.9% higher in March, while Building Permits surged 2.5%, bouncing sharply after sharp declines in the previous two months. Still pending of release are March Industrial Production and Capacity Utilization.

The pair trades in the red daily basis, with little directional strength as per still confined to its latest range. In the 4 hours chart, the price is nearing its moving averages that anyway remain directionless, while technical indicators have retreated within positive territory, now nearing their mid-lines, not enough to confirm a downward move ahead. Below 1.2335, the slide can extend down to the 1.2300 region, while to the upside, the key resistance is now far away, at 1.2430, a daily descendant trend line coming from this year high, and the roof of the symmetrical triangle that contains the price since mid-February.

Support levels: 1.2335 1.2290 1.2250

Resistance levels: 1.2395 1.2430 1.2460

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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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