EUR/USD fades the spike to 1.1224, back to 1.1200

Euro jumps against the US dollar after on the potential delay from the US to European cars.
Improvement in risk appetite also helping EUR/USD move higher.

Matías Salord FXStreet

The EUR/USD pair rose from levels near daily lows to 1.1224, hitting a fresh daily high. Then pulled back, being unable to hold on top of the key short-term level at 1.1220 and as of writing is hovering around 1.1200, marginally lower for the day but off daily lows.

Earlier today, following the release of mixed US economic data, the pair bottomed at 1.1176, the lowest level since last Thursday. Retail sales in April dropped unexpectedly while industrial production contracted. The data had a limited impact.

The move to the upside in EUR/USD took place after Bloomberg reported that US President Trump was planning to delay tariffs on European car imports for six months. The report also pushed equity prices to the upside. In Wall Street, main stock indexes are in positive territory after opening with losses.

Despite the recovery, EUR/USD remains with a bearish bias, as it was unable to hold on top 1.1220. On the flip side, the area around 1.1165 and 1.1175 is a critical support: a break lower could lead to further losses, exposing the next support at 1.1135/40.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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