- Weaker US dollar supports EUR/USD gains.
- Euro unable to break above 1.1360, continues to trade in a small range.
The EUR/USD pair bounced from 1.1340 back toward daily highs near 1.1360 as it continues to move sideways in a range of 20 pips. Price action across majors remains limited with the Swiss franc and the Canadian Dollar among the top performers.
The greenback is down across the board supporting EUR/USD gains. The DXY dropped to 96.30, reaching the lowest level since March 1. It is falling for the seventh time out of the last eight trading days. Not even higher US yields helped the greenback.
Data released today showed that Factory orders increased by 0.1% in January against the 0.3% expected. Earlier, the ZEW survey (German Economic Sentiment) eased from 15 to 11.1, slightly below the 11.7 of market consensus while EZ sentiment bounced sharply to the upside from -16.6 to -2.5, surpassing expectations.
Market attention continues to focus on Brexit related developments but sensitivity to the latest headlines is low. Another relevant event is the FOMC meeting that started today. No change in rates is expected. New economic projections will be presented and analysts will look for clues about the future path of rates and the balance sheet.
Short-term levels to watch
EUR/USD is hovering around 1.1345/50, at the 20-hour moving average. To the upside, resistance levels could be seen at 1.1360 (daily high), 1.1375 and 1.1405. On the flip side, the immediate support is the lower bottom of the current range at 1.1335/45, followed by 1.1315 (Mar 18 low) and 1.1285.
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