- Firmer USD and a drop in Eurozone Sentix to keep recovery short-lived.
- Fedspeaks in focus amid lack of fresh catalysts from the US docket.
The EUR/USD pair makes a tepid recovery attempt from 1.1922 lows, as markets appear to have ignored the Eurozone Sentix Investor Confidence numbers, which showed a dip in the investors’ confidence to 19.2 for May versus 21.0 expected.
However, the recovery appears limited amid persisting US dollar strength across the board, as the USD bulls continue to cheer stronger US fundamentals, with the latest US jobs data having added to the signs of a strengthening US economy while the Fed remains on track to hike the interest rates in June.
Looking ahead, the spot is likely to maintain its range play on the 1.19 handle should the bulls continue to guard the last. A breach of the multi-month lows of 1.1911 levels could pave the way for further declines towards the December lows of 1.1718, as traders await the US CPI report due later this week.
EUR/USD levels to watch
According to Slobodan Drvenica at Windsor Brokers, “Negative near-term outlook is expected to persist while 200SMA caps and keep in focus target at 1.1910 (Friday’s spike low / new 2018 low), with stronger bearish acceleration capable of traveling towards 1.1790 (Fibo 76.4% of 1.1553/1.2555). An eventual close below 1.1936 is seen as an initial requirement for bearish continuation.
Res: 1.1978; 1.2000; 1.2016; 1.2053.
Sup: 1.1910; 1.1893; 1.1854; 1.1816.”
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