EUR/USD analysis: holding at highs on dollar's weakness

EUR/USD Current price: 1.2366

  • US data failed to impress, investors waiting for Wall Street for direction.
  • EUR/USD could extend advance up to the 1.2430 region.

The events in Syria ended up hurting mostly the greenback, resulting in the EUR/USD pair reaching a daily high of 1.2373, with demand strengthening after the European opening. The pair consolidated around the level ahead of US data, which came in mixed, as the preliminary NY Empire State Manufacturing index for April disappointed, down to 15.8 from the previous 22.5 and the expected 18.6.  Despite the slower pace of growth, the index indicates that business activity continues growing at a solid pace in the region. As for March Retail Sales, they were up by 0.6%, better than the expected 0.4% advance, although the more relevant Retail Sales Control Group figure matched market's forecast with 0.4%. The US has still some minor figures pending of release, but attention will flip now to Wall Street, poised to open sharply higher when compared to Friday's close.

The EUR/USD pair holds on to gains and is biased higher short-term, although still unable to break through its daily high. In the 4 hours chart, the pair settled above all of its moving averages, which anyway remain directionless and confined to a tight range, reflecting the absence of a trend, while technical indicators have entered the positive territory, the Momentum still heading higher but the RSI losing its upward strength. A strong resistance is last week's high at 1.2395, followed by a daily descendant trend line, coming from this year's high at 1.2554, currently at around 1.2430.

Support levels: 1.2335 1.2290 1.2250  

Resistance levels:   1.2395 1.2430 1.2460

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