EUR/USD decline finds contention near 1.2360

  • The pair’s correction lower meets buyers in the 1.2370/65 band.
  • The greenback manages to regain the 89.50 area.
  • German/EMU ZEW survey came in below forecasts for the month of April.

The pullback in EUR/USD appears to have found some dip-buyers in the area of daily lows in the 1.2370/65 band.

EUR/USD focused now on US data, Fedspeak

The pair moved to fresh 3-week tops earlier in the European morning, although the bullish attempt seems to have lost legs in the 1.2410/15 band, retreating soon afterwards to the 1.2370/60 band, where some decent support looks to have emerged.

Disappointing prints from the German/EMU ZEW survey puts the single currency under extra downside pressure, while the bounce off daily lows in the buck also added to the drop.

Looking ahead, the greenback is expected to remain in centre stage as US Housing Starts, Building Permits, Industrial and Manufacturing Production are all due.

Additionally, San Francisco Fed John Williams (voter, centrist), R.Quarles, Philadelphia Fed P.Harker (non voter, hawkish) and Chicago Fed C.Evans (2019 voter, dovish) area all due to speak later in the day.

EUR/USD levels to watch

At the moment, the pair is losing 0.04% at 1.2375 facing the immediate resistance at 1.2414 (high Apr.17) followed by 1.2478 (high Mar.27) and then 1.2538 (high Jan.25). On the downside, a breakdown of 1.2300 (low Apr.12) would target 1.2214 (low Apr.6) en route to 1.2153 (low Mar.1).

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