EUR/USD Unable to Recover, Despite Strong German Data

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EUR/USD gradually climbed up from support at 1.2750 and made its way towards 1.28. The pair already crossed this level, but was unable to keep it up.

This comes despite strong German data and as markets await the opening of banks in Cyprus.EUR USD Unable to climb as Cyprus banks are set to open March 28 2013

Update: The pair now falls to support on weak unemployment figures.

German retail sales rose by 0.4%, significantly exceeding the drop of 0.5% that was anticipated. Last month’s figure was revised from +3.1% to +3%.

Nevertheless, EUR/USD is now at 1.2788, down from 1.2814 seen earlier.

Banks in Cyprus open at 10:00 GMT and the tension is high. Capital controls have been imposed to prevent a massive bank run. They are currently planned for only one week, but they could be extended.

The stock exchange remains closed in Cyprus.

Support is at 1.2750, followed by 1.27. Resistance is at 1.2805 followed by 1.2880. Note that liquidity is falling due to the Easter holiday. This could cause erratic moves.

For more levels and analysis, see the euro to usd forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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