EUR/USD: "many fragilities" pushed the EUR lower

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0863

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The EUR/USD advanced up to 1.0932 as an initial reaction to ECB's Draghi confident words on the economy, in the press conference following the announcement of its latest monetary policy meeting. The Central Bank left its policy unchanged, whilst the press conference started with Super Mario saying that the downside risk to the economy diminished further, whilst the economic expansion will continue to firm. Inflation however, is still a concern for policymakers, while removing easing was not discussed, as the economy still faces "many fragilities."

The EUR/USD pair retreated from the mentioned high and fell down to 1.0856, trading barely above this last ahead of Wall Street's opening. Worse than expected US data released alongside, is the only reason why the pair is not falling further. Initial jobless claims rose to 257K worse than the 241K expected in the week ending April 21st, whilst eh goods trade deficit expanded to $65 billion in March. Durable Goods Orders for the same month rose just by 0.7%, missing expectations of a 1.2% advance, while the core figure fell by 0.2%, against the 0.4% forecasted.

Ahead of Wall Street's opening, the pair turned bearish according to the 4 hours chart, breaking below its 20 SMA for the first time this week, whilst technical indicators turned south, entering now negative territory. Should the price extend below the mentioned low, 1.0820 is the next support, whilst below this last, the pair has scope to fill the weekly opening gap at 1.0730. To the upside, only beyond 1.0950 the pair can recover its bullish stance.

Support levels: 1.0855 1.0820 1.0790

Resistance levels: 1.0910 1.0950 1.1000

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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