- 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