EUR/USD eases to 1.12 as greenback pushes to sesison highs
The EUR/USD pair eased toward the 1.12 handle in the US afternoon as the greenback gathered some bullish momentum. As of writing, the pair was trading at 1.1205, down 0.12%, or 12 pips, on the day.
Despite this week's important events and data, which had potential to create some volatility, the pair has been trading in a 100-pip range since the start of the week, unable to set a short-term direction. There were no macro data from the euro area today and the mixed batch of data from the U.S. couldn't help the investors make up their mind about the greenback. Nevertheless, the US Dollar Index is holding on to its recovery gains, now at 97.15, up 0.22% on the day.
- US: Weekly initial claims was 234,000, an increase of 1,000 from the previous week
- US: The international trade deficit was $67.6 billion in April
Although tomorrow's economic calendar features important data from the U.S., such as the preliminary GDP growth and the personal consumption expenditures, they are unlikely to cause any significant market reactions unless they are too far off from the consensus. In fact, both the GDP growth and the personal consumption expenditures are expected to remain unchanged on a quarterly basis.
Technical levels to consider
The pair could extend some bullish momentum with a clean break above 1.1265 (May 23 high) and aim for 1.1300 (Nov. 9 high) and 1.1365 (Aug. 18 high). To the downside, supports could be seen at 1.1200 (psychological level), 1.1170 (May 24 low) and 1.1100 (May 19 low).
- What is the key data from EU next week? - Nomura