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Forex: EUR/USD spikes to 1.3114 but stays below 1.3000

FXstreet.com (Barcelona) - The market is deciding what to do with the EUR/USD as the hourly and 4 hours chart hold a negative stance and the pair peaked at 1.3034 high on the European morning. The NY session is seeing the EUR/USD finding support at 1.2980 (1.2974 session low). The market found its way to spike to 1.3014 high quickly before going back below the psychological level at 1.3000.

US durable goods fell by -5.7% in March, instead of only -2.8% as expected. February data was revised lower, from 5.6% to 4.3%. Data excluding transportation was also disappointing, down by -1.4% (consensus of +0.5%) and downward revision from -0.7% to -1.7% in February.

Market consensus was expecting better weather in April to help the CBI realized trades to outperform yesterday’s industrial survey, rebounding after 4 declining months in a row, but the figure fell to -1 instead of rising from 0 to 7. Earlier, UK MBA Mortgage Approvals rose from 30.5K to 31.2K, as expected in March.

The German IFO survey came in lower than expected for the April report: drop from 106.7 to 104.4 in business climate (consensus of 106.2), fall from 109.9 to 107.2 in current assessment (consensus of 109.5) and drop from 103.6 to 101.6 in expectations (consensus of 103.0).

“The hourly chart shows price below 20 SMA and indicators heading lower getting into negative territory, while in the 4 hours chart technical readings hold a negative stance: a candle opening below 1.2970 or an acceleration below the level will confirm further falls for today, as long as 1.3040 maintains the upside limited”, wrote FXstreet.com independent analyst Valeria Bednarik.

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