The euro is now back to flat on the year.
It opened at 1.1036, fell as low as 1.0601 on April 15 and has now climbed all the way back.
There is some resistance at the December high of 1.1139 followed by last year’s high at 1.1276.
The latest leg of EUR/USD is more about the US dollar side after cooler CPI and PPI numbers this week but don’t rule out more euro selling later. The numbers rolling in from Europe are concerning, particularly from Germany. Today’s eurozone industrial production numbers were down 0.1% compared to a +0.5% reading expected. Yesterday’s German ZEW sentiment survey also fell to the lowest since February.
Also worth keeping in mind is that the range so far this year in EUR/USD is extremely narrow in a historical perspective. Typically, you would see 15-20 big figures but the range is currently just over 4.
A real trend in the euro market would be a godsend to FX trading, though it’s hard to complain given how lively USD/JPY has been.
This article was written by Adam Button at www.forexlive.com.
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