EUR/USD Analysis: easing in range, bearish below 1.1200

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1255

EU data failed to impress, US figures upbeat.
Federal Reserve speakers scheduled for the American afternoon.

The EUR/USD pair continued trading uneventfully in the 1.1260/80 price zone during the first half of the day, having peaked at 1.1287, matching its Wednesday's high. The dollar gathered momentum ahead of the release of US data, with the pair breaking lower after the world's largest economy unveiled better-than-expected figures. According to the official releases, March PPI was up by 0.6% MoM and by 2.2% YoY, while the core readings came in at 0.3% and 2.4% respectively. Also, and for the week ended April 5, the number of those filing for unemployment decreased to 196K, better than the 211K expected, and the lowest reading in almost five decades. For the previous week, claims were revised higher to 204K. Earlier in the day, Germany unveiled March inflation, which resulted as expected, failing to trigger a relevant move. The US session will bring several Fed's speakers, which could offer clues about the future of the monetary policy.

The EUR/USD pair trades at daily lows around 1.1255 heading into Wall Street's opening, gaining bearish potential according to readings in the 4 hours chart, as the pair is now below all of its moving averages, while technical indicators turned south, the Momentum entering negative ground and the RSI pressuring its 50 level. The immediate support is the 1.1245 level, the 23.% retracement of the latest daily decline, an area that contained advances throughout most March. Nevertheless, bears will be stronger once the par losses the 1.1200 mark.

Support levels: 1.1245 1.1200 1.1175

Resistance levels: 1.1285 1.1315 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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