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EUR/USD has close ties with 1.29 support area, PPI ignored

FXStreet (Moscow) - EUR/USD is under slight pressure in the European morning, nearing 1.29 area; German PPI unchanged.

Nothing is lost for euro

The way the pair behaved on Thursday, the day after FOMC, says a lot – the market understands the investors overreacted to Yellen’s comments. Besides, Thursday’s disappointing data from US housing and manufacturing sectors question the stable recovery of the American economy. If the US reports keep bringing negative surprises, it may kill the hopes for earlier Fed rate hike, and support the pair recovery. The just released PPI number met the forecasts, and were completely ignored by the market.Since there are no significant releases scheduled for today, we pair may move on profit-taking before the weekend.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.2896, with support below at 1.2861, 1.2799, and 1.2764, with resistance above at 1.2958, 1.2993 and 1.3055. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.2924 and the daily 20EMA bearish at 1.2935. Hourly RSI is bullish at 50.

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