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31 Aug 2015
EUR/USD: Bulls defending 1.12 handle, EZ CPI in focus
FXStreet (Mumbai) - EUR/USD struggles to retain early gains and keeps pushing lower in the European morning, as the greenback seems to have recovered partial losses against its major competitors while the common currency turned cautious ahead of Eurozone inflation data due out shortly.
EUR/USD testing 1.1200
The EUR/USD pair trades 0.22% higher at 1.1211, facing rejection near 1.1230 levels during the last hours. The major recedes gains and now looks to challenge 1.12 handle as the traders now switched to the US currency ahead of the Euro zone CPI figures which may fail to impress the EUR bulls.
The EUR/USD pair was also unresponsive to the upbeat German sales data released earlier this session. Retail turnover rose 1.4% m/m in July, up from a 2.3% decline recorded in June, coming in above market expectations of a 1.1% increase.
Moreover, the pair pared gains despite falling European indices which also failed to boost the safe-haven bids for the common currency. The euro added solid gains in early European trades, supported mainly by persisting concerns surrounding China.
Markets now shift focus towards Euro zone CPI figures due later this session. While, higher volatility is expected to remain in the financial markets for the next two weeks, as traders scrutinize the final economic numbers, especially this week’s labour market report, before the Federal Reserve's (Fed) next meeting.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1300, above which gains could be extended to 1.1361 (Aug 24 Low), levels. On the flip side, support is seen at 1.1172 (Today’s Low) below which it could extend losses to 1.1105 (Aug 20 Low) levels.
EUR/USD testing 1.1200
The EUR/USD pair trades 0.22% higher at 1.1211, facing rejection near 1.1230 levels during the last hours. The major recedes gains and now looks to challenge 1.12 handle as the traders now switched to the US currency ahead of the Euro zone CPI figures which may fail to impress the EUR bulls.
The EUR/USD pair was also unresponsive to the upbeat German sales data released earlier this session. Retail turnover rose 1.4% m/m in July, up from a 2.3% decline recorded in June, coming in above market expectations of a 1.1% increase.
Moreover, the pair pared gains despite falling European indices which also failed to boost the safe-haven bids for the common currency. The euro added solid gains in early European trades, supported mainly by persisting concerns surrounding China.
Markets now shift focus towards Euro zone CPI figures due later this session. While, higher volatility is expected to remain in the financial markets for the next two weeks, as traders scrutinize the final economic numbers, especially this week’s labour market report, before the Federal Reserve's (Fed) next meeting.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1300, above which gains could be extended to 1.1361 (Aug 24 Low), levels. On the flip side, support is seen at 1.1172 (Today’s Low) below which it could extend losses to 1.1105 (Aug 20 Low) levels.