- Thin liquidity and no macro drivers keep the recovery in check.
- USD index retreats from 2-week highs on Mueller’s report.
- Consolidation mod to extend ahead of US housing data.
The bulls lack further momentum in the European session, sending the EUR/USD pair back into the familiar range between 1.1240-50 levels, as they await the US housing sector data for some trading impetus amid Easter holiday-thinned quiet trading.
The spot attempted a tepid bounce from the weekly lows of 1.1227 after the Euro got hammered across the board on disappointing German and Eurozone manufacturing PMI numbers that re-ignited Euro area growth concerns.
Adding to the downside in EUR/USD, the US dollar caught a fresh bid-wave across the board on above-forecast US retail sales data. The macro data divergence between the Eurozone and the US continues to remain in favor of the USD bulls.
Looking ahead, the recovery attempt in the pair, courtesy of broad USD pullback on Mueller’s report, appear shallow, as the technically the pair remains exposed to the downside risks, with the yearly lows at 1.1177 seen as the next likely target.
More so, the recent in-fighting within the Italian government over the graft scandal could also weigh negatively on the shared currency and keep the upside attempts limited. Italy’s Di Maio: Italy's League threatening to bring down government
Meanwhile, markets eagerly await the US housing starts and building permit data to bring some life to the otherwise Good Friday holiday-thinned/ data-dry trading session.
EUR/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
Editors’ Picks
EUR/USD holds its ground amid mixed EU election results
EUR/USD is stable around 1.1200 amid mixed EU elections in which main parties lost ground to both centrist and extreme ones. Trump said he hopes for a deal with China. Liquidity is thin due to a UK holiday.
GBP/USD ticks up as Brexit and Remain parties are balanced
GBP/USD is trading around 1.2750, recovering. Farage's Brexit party won the EU elections but a trio of Remain parties matched him. Uncertainty remains high after PM May's resignation announcement.
USD/JPY keeps gains near 109.50 amid light trading
The USD/JPY pair is on the bids near 109.50 ahead of Europe open on Monday. The 110.55/60 resistance-confluence including 100-day simple moving average (SMA) and 23.6% Fibonacci retracement of January to April rise acts as strong upside cap.
The Evolution of Three Issues are Key in the Week Ahead
As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces--trade, Brexit and the US economy. With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes.
Gold aims to revisit $1289/90 despite UK/US holiday
With the pessimism surrounding global trade developments and greenback weakness joining EU election results, Gold prices are on the bids near $1287.30 while heading into the European session on Monday.
Editors' pick
EUR/USD holds its ground amid mixed EU election results
EUR/USD is stable around 1.1200 amid mixed EU elections in which main parties lost ground to both centrist and extreme ones. Trump said he hopes for a deal with China. Liquidity is thin due to a UK holiday.
GBP/USD ticks up as Brexit and Remain parties are balanced
GBP/USD is trading around 1.2750, recovering. Farage's Brexit party won the EU elections but a trio of Remain parties matched him. Uncertainty remains high after PM May's resignation announcement.
USD/JPY keeps gains near 109.50 amid light trading
The USD/JPY pair is on the bids near 109.50 ahead of Europe open on Monday. The 110.55/60 resistance-confluence including 100-day simple moving average (SMA) and 23.6% Fibonacci retracement of January to April rise acts as strong upside cap.
The Evolution of Three Issues are Key in the Week Ahead
As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces--trade, Brexit and the US economy. With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes.
Gold aims to revisit $1289/90 despite UK/US holiday
With the pessimism surrounding global trade developments and greenback weakness joining EU election results, Gold prices are on the bids near $1287.30 while heading into the European session on Monday.