EUR/USD making headways towards 1.0950, US data, Draghi eyed

Dhwani Mehta FXStreet

The EUR/USD pair staged a sharp reversal from a drop to 1.0875 lows, now extending recovery gains back beyond 1.09 handle amid deeper correction seen in the US dollar against its main competitors. The USD index attacks 99 handle, down -0.21% on the day, correcting after yesterday’s Fed-backed solid rebound.

The spot regained momentum above 1.0900 levels, despite positive European stocks, as the Euro received fresh boost from upbeat Eurozone and German final services PMI reports, which bettered estimates. Also, the common currency benefits from upbeat Eurozone retail sales data, as focus now shifts towards the US macro updates and ECB Chief Draghi’s speech due later in the NA session.

Moreover, the major also remains underpinned ahead of the French election that takes place on Sunday, with Macron maintaining the lead in the presidential race against the anti-EU Le Pen, as represented by various opinion polls. Also, the French televised election debate also showed Macron as the most convincing candidate, especially over his arguments on the economy and Euro.

EUR/USD Technical Levels

Technical resistances for the pair are aligned at 1.0949/51 (Apr 28 & 24 high), 1.0981 (classic R3) and finally 1.1000 (key resistance). On the flip side, the spot finds next support at 1.0880 (May 3 low), a break below that level could open the door to 1.0855/50 (Arp 28 & 27) and 1.0819 (Apr 24 low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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