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EUR/USD surges to 1.2509 during European session - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik notes that EUR/USD rose to 1.2509 during the European session, after hitting a another yearly low at 1.2438 during Asian hours.

Key quotes

"The American currency started the day maintaining a strong footing. European opening however, brought some relief to majors that corrected slightly against the dollar: the EUR/USD surged up to 1.2509 and stands a few pips below the level."

"Local data brought weaker than expected Manufacturing PMI readings for both, Germany and the EZ, albeit above past month ones, which at least signals a temporal pause in the local slowdown."

"Technically, the 4 hours chart shows indicators heading higher from extreme oversold readings, still deep in the red, while 20 SMA maintains a strongly bearish slope currently around 1.2580."
"As for price behavior, the pair remains confined to a tight range, as market players shifted to cautious ahead of upcoming Central Banks and US employment figures later on the week."

"Nevertheless, a price acceleration below 1.2440 should see the pair extending its decline down to 1.2370 next strong support."

"To the upside, the immediate resistance stands at 1.2520, where the pair closed last Friday: a recovery above it should lead to a run up to 1.2580, mentioned 20 SMA."

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