EUR/USD ends better bid on the day, testing 1.2520 fresh highs
- EUR/USD capped on a number of attempts in the 1.2520.
- DXY is on its knees within the day's range of 88.573 - 89.328.
EUR/USD has been failing to break the top of the run ona number of attempts in the last spell of trade in the NY shift, capped through 1.2520 and is currently trading at 1.2517, up 0.82% on the day, having posted a daily high at 1.2523 and low at 1.2385.
EUR/USD was bid in European trade and rallied away from the 10-D SMA at 1.2368 to open the NY session at 1.2425 supported by flows through EUR/JPY that took the single currency as high as the 1.25 handle on the session. However, bulls stumbled on the US data with the Atlanta Fed's latest Q1 GDP forecast arriving in at 5.4 vs prior 4.2%, boosting the greenback before a rerun back to 1.25 again. Eyes will now turn to the EZ Dec PPI ahead of the US nonfarm payrolls report.
US data ad DXY on its knees
The dollar was under pressure within the day's range of 88.573 - 89.328 in the DXY (heavily weighted to the euro), extending its sell-off to fresh lows despite the hawkish FOMC outcome and today's mixed US data, (note a decline in employment):
Markit manufacturing PMI arrived at 55.5 (vs 54.9) while the ISM manufacturing index reached 59.1 (vs 58.8). Details of the ISM included a decline in the employment index to 54.2 from 57.2 and a slide in the new orders index to 65.4% from 67.4%.
EUR/USD levels
Technicals lean bullish with price supported by the 10-D SMA and higher RSI's. Valeria Bednarik, chief analyst at FXStreet explained that the single unit remains above the 23.6% retracement of its January rally, and in the 4 hours chart, is now moving away from its 20 SMA for the first time this week. "Technical indicators in the mentioned chart lack upward strength but hold within a positive territory. The multi-year high of 1.2535 is a key resistance for this Friday, as a break above the level on poor US data, will likely see the pair nearing 1.2600 ahead of the weekly close," Valeria added.