EUR/USD stopped just shy of the 1.1450 resistance line. The line worked to limit euro/dollar moves in the past and is now serving as the top for the pair in two consecutive days.
Will this be established as even stronger resistance or can the pair make another move higher towards the round level of 1.15?
EUR/USD traded at much lower levels earlier in the day, hitting a low of 1.1322, before moving north. It was all about the US: a weak Empire State number was followed with weak industrial production and the final nail in the coffin came from consumer confidence.
April’s retail sales numbers showed that the US consumer did not return to shopping back in April and the fall of consumer confidence implies that he didn’t act in May as well.
The euro has its own impediment: QE without an early exit, but for now, it is a USD sell-off.
The next level of resistance is 1.15, followed closely by 1.1534. The round number of 1.16 is next with 1.1680 the final level to watch for now. On the downside, 1.1375 and 1.1340 provide some kind of support.
In our latest podcast, we ask: USD: Glass half full or half empty? And also discuss other topics:
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