Us Economic Data And Eurozone Developments
US economic data displayed mixed outcomes, as Housing Starts declined but New Home Sales rose in April. In the Eurozone, Germany’s GDP saw year-on-year improvement, though it remained in contractionary territory, while speculation on a possible ECB rate cut did not adversely affect the Euro.
The Euro benefitted from US Dollar weakness, shown by a 0.79% drop in the US Dollar Index, reaching its lowest since April 29. The ‘sell America’ trend persisted, worsened by Trump’s trade war announcement and a Moody’s downgrade of US government debt.
The EUR/USD uptrend resumed, reaching 1.1375 and approaching key resistance levels at 1.1450 and 1.1500. Yet, if it falls below 1.1300, it might revisit recent lows, with ECB interest rate decisions influencing future performance.
Current Eur Usd Resistance Levels
Currently, EUR/USD is targeting resistance around 1.1450 to 1.1500. Breaching this area wouldn’t just be technical confirmation of strength; it would likely trigger further momentum-based positioning. But should the pair fail to hold above 1.1300, the door reopens for a return to recent lows. Much of what happens next hinges on central bank decisions—particularly from the ECB—and whether traders are willing to continue shorting the Dollar while balancing potential risk-on flows elsewhere.
