EUR/USD Meets Resistance at 1.0950 Level
Frankfurt (April 26) EUR/USD attempted to follow through on Monday’s gain during Tuesday’s session, but has met an area of resistance at the 1.0950 level. The pair tested this level on Tuesday and also came up against this area in today’s trading but is now in the process of pulling back. At present, EUR/USD is off the high of the session and trading at 1.0888, a loss of 0.34% from Tuesday’s North American close.
The Stochastic, a price momentum indicator, has produced a cross to the downside from an extremely overbought level on the daily chart. Thus, further downside could characterize today’s price action.
Near-term support is at the mid-point of Tuesday’s price range, which is currently being tested. The next level of support is at Monday’s low, which comes in at the 1.0821 level. This area is expected to remain intact and a drop back to test Monday’s low should represent a low risk buying opportunity.
On the upside, above 1.0950, the next target is at 1.1000, followed by 1.1142, which represents the high established in early November 2016 and comes in near the lows set in late August and near the mid-part of September 2016.
As was the case on Tuesday, there were no high impact economic reports out of the Eurozone today. The next events to watch are the release of eurozone business confidence for April, which will be released Thursday at 05:00 ET. This will be followed by the European Central Bank rate decision at 07:45 ET. No change in policy is expected, but commentary on the outlook for quantitative easing could move the markets. ECB President Draghi will hold his regular post-meeting press conference at 08:30 ET. Prior to that, German inflation data will be released at 08:00 ET. The April, preliminary reading, is expected to rise to 1.9% from 1.6%.
In the US, the next high impact report is due Thursday, as durable goods orders will be released at 08:30 ET. Initial jobless claims will also be released at that time. Pending homes sales are due Thursday at 10:00 ET.
Source: EconomicCalendar
