3 May 2016
EUR/USD prints fresh 9-month highs at 1.1565
The EUR/USD pair prolongs its upward trajectory in the early European trades, driving the prices to fresh 2016 highs beyond the mid-point of 1.15 handle.
EUR/USD bounces-off hourly 20-SMA
Currently, EUR/USD trades +0.18% higher at 1.1556, hovering within a striking distance of fresh nine-month highs scored at 1.1565 some minutes ago. The European traders hit their desks and bid up the main currency pair in early dealings, as they continue to weigh the prospects of a June/July Fed rate hike, particularly after the recent series of weak US fundamentals. The latest ISM manufacturing PMI from the US dipped in April, coming in at 50.8, down from the 51.8 seen in March, when it snapped its five-month-long contraction.
However, the upside appears restricted given the risk-on rally in the Asian equities following an unexpected rate cut decision by the RBA. In times of improved risk conditions, markets favour the riskier assets at the expense of the safe-haven euro. Meanwhile, the shared currency is expected to extend its week-long run of gains in the day ahead, despite a data-light EUR calendar, as the US dollar continues to weaken across the board. The USD index now drops -0.28% to fresh sixteen-month lows of 92.23.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1591/1.1600 (daily R2/ round number). A break beyond the last, doors will open for a test of 1.1646/50 (daily R3/ psychological levels). On the flip side, the immediate support is placed at 1.1524/21 (1h 20-SMA/ daily low) below which at 1.1503/00 (daily pivot/ key level) could be tested.
EUR/USD bounces-off hourly 20-SMA
Currently, EUR/USD trades +0.18% higher at 1.1556, hovering within a striking distance of fresh nine-month highs scored at 1.1565 some minutes ago. The European traders hit their desks and bid up the main currency pair in early dealings, as they continue to weigh the prospects of a June/July Fed rate hike, particularly after the recent series of weak US fundamentals. The latest ISM manufacturing PMI from the US dipped in April, coming in at 50.8, down from the 51.8 seen in March, when it snapped its five-month-long contraction.
However, the upside appears restricted given the risk-on rally in the Asian equities following an unexpected rate cut decision by the RBA. In times of improved risk conditions, markets favour the riskier assets at the expense of the safe-haven euro. Meanwhile, the shared currency is expected to extend its week-long run of gains in the day ahead, despite a data-light EUR calendar, as the US dollar continues to weaken across the board. The USD index now drops -0.28% to fresh sixteen-month lows of 92.23.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1591/1.1600 (daily R2/ round number). A break beyond the last, doors will open for a test of 1.1646/50 (daily R3/ psychological levels). On the flip side, the immediate support is placed at 1.1524/21 (1h 20-SMA/ daily low) below which at 1.1503/00 (daily pivot/ key level) could be tested.