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EUR/USD immune to EMU data

FXstreet.com (Barcelona) - The sentiment surrounding the euro remained unaltered after the release of the EMU’s Producer Prices during April.

Prices came in softer than forecasts, contracting 0.6% on a monthly basis and 0.2% over the last twelve months vs. the median at -0.2% and 0.3%, respectively. Tim Riddell, Head of Global Market Research at ANZ, commented, “the talk of a Head and Shoulders pattern seems misplaced given that EUR/USD is well within a broad previous range… The current push into the 1.3025-50 will further reduce the downside risks and favour range trading. The favoured profile is for another squeeze towards 1.32-1.33 as a 1.25-1.33 range is defined”.

As of writing, the pair is flat 1.3075 and a surpass of 1.3108 (high Jun.3) would open the door to 1.3194 (high May 8) and then 1.3243 (high May 1). On the downside, support levels line up at 1.3037 (MA200d) followed by 1.2961 (MA21d) and then 1.2956 (low Jun.3).

EUR/GBP weekly chart vrs daily

The EUR/GBP has formed a descending channel on the monthly charts. While EUR/GBP stays below the 2011 high at 0.9082, the downtrend would usually remain intact. However, on the daily, it is still looking bullish through the topside of the wedge formation it had broken.
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