EUR/USD Loses Upside Momentum

Frankfurt (April 12)  EUR/USD reached the 1.0630 level in Tuesday’s trading, but failed to maintain near that area and is currently trading at 1.0604, essentially unchanged from Tuesday’s North American close.

The inability to sustain the upward momentum in the presence of an oversold condition on the Stochastic is a sign of weakness that leaves the bias in today’s trading to the downside.

Initial support is at the low established last Friday at 1.0569. Overall however, given last week’s drop below the 61.8% retracement level of the March advance, an eventual complete retracement is expected, resulting in a move to the 1.0500 area.

Resistance is now at Tuesday’s high, at the 1.0630 level, followed by 1.0650. At present, a near term return to these areas of resistance is not expected.

There were no key economic releases on the European calendar today. In the US, import/export prices will be released at 08:30 ET.

Source: EconomicCalendar