7 May 2015
EUR/USD might see further losses below 1.1250 – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, shares the key data releases in the Eurozone and US, and further notes that technicals favour declines if EUR/USD drops below the support at 1.1250.
Key Quotes
“The EUR/USD retraced from a fresh high set at 1.1391, on the back of yet another negative headline on Greece, as EU Dijsselbloem said that it's unlikely a deal can be reached on Monday that the deadline for the country is the end of June when the latest rescue plans ends, but that this deadline can be anticipated if the country runs out of cash. Investor's run to take profits out the table, sending the pair sub 1.1300.”
“As for data, the EU Retail PMI surged to a 10 month high in April, supporting the early advance, whilst Factory Orders in Germany rose less than expected in March.”
“In the US, weekly unemployment claims for the week ended May 1 came out at 265K against the 280K expected, boosting the greenback and sending the pair to fresh daily lows around 1.1265”
“Technically, the 1 hour chart shows that the price fell below its 20 SMA, now offering short term resistance around 1.1340, whilst the technical indicators head south in negative territory.”
“In the 4 hours chart, the Momentum indicator maintains a tepid bullish slope in overbought territory, whilst the RSI indicator is retreating from overbought territory, now heading south around 63, anticipating some additional declines should the price extend below 1.1250, the immediate support.”
“Support levels: 1.1250 1.1210 1.117”
“Resistance levels: 1.1295 1.1340 1.1385”
Key Quotes
“The EUR/USD retraced from a fresh high set at 1.1391, on the back of yet another negative headline on Greece, as EU Dijsselbloem said that it's unlikely a deal can be reached on Monday that the deadline for the country is the end of June when the latest rescue plans ends, but that this deadline can be anticipated if the country runs out of cash. Investor's run to take profits out the table, sending the pair sub 1.1300.”
“As for data, the EU Retail PMI surged to a 10 month high in April, supporting the early advance, whilst Factory Orders in Germany rose less than expected in March.”
“In the US, weekly unemployment claims for the week ended May 1 came out at 265K against the 280K expected, boosting the greenback and sending the pair to fresh daily lows around 1.1265”
“Technically, the 1 hour chart shows that the price fell below its 20 SMA, now offering short term resistance around 1.1340, whilst the technical indicators head south in negative territory.”
“In the 4 hours chart, the Momentum indicator maintains a tepid bullish slope in overbought territory, whilst the RSI indicator is retreating from overbought territory, now heading south around 63, anticipating some additional declines should the price extend below 1.1250, the immediate support.”
“Support levels: 1.1250 1.1210 1.117”
“Resistance levels: 1.1295 1.1340 1.1385”