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Thomson Reuters
May 10 - 02:36 PM
EUR/USD - COMMENT-Fed Speak, Data Compound Angst Of EUR/USD Bears
First appeared on eFXplus on May 10 - 11:10 AM

EUR/USD added to gains as downbeat U.S. data and Fed rhetoric nN9N21F00P nN9N21F00R emphasizing lackluster U.S. inflation stole the spotlight from Europe's mixed economic performance and U.S.-Sino trade ructions. Bulls have set their sights on 1.1260/75 resistance, which encompasses the 55-DMA, May 1 high and daily cloud base. Indicating momentum toward gains, daily and monthly RSI studies are now rising.
EUR/USD shorts are likely growing anxious due to the lack of downside price action.
A break of 1.1260/75 will increase their angst and could drive them cover positions.
Stop losses for recent EUR/USD short are likely to be triggered if the resistance breaks.
Bulls will then target 1.1330/45 where the March 25 high and daily cloud top reside. After today's data, the anemic inflation sentiment weighed down the U.S. interest rate complex.
The U.S. Treasury yield curve shifted lower again while eurodollar and fed funds futures prices rallied, reflecting increased odds of Fed rate cuts.
As a result in the shift lower in U.S. rates, German-U.S.
spreads tightened.
For more see nL5N22M1FD nL5N22M1SD nR1N1XV02N nR1N21G011

chart: Click here

Source:
Thomson Reuters IFR Markets

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