EUR/USD erases losses but remains limited below 1.1200

By FXStreet EUR/USD moved to the upside during the American session and also after Wall Street closing bell. The pair rose to test daily highs around 1.1185 but failed to break higher.

It was trading at 1.1174/78, around the same level it closed yesterday. The pair lost ground the previous four trading days and today it managed to recover after bottoming at 1.1143, hitting the lowest level since March 16, when the Federal Reserve decided to leave rates unchanged.

EUR/USD outlook

“Technically, the 4 hours chart shows that the roof of the daily descendant channel is currently being tested, and also that the technical indicators have bounced from oversold readings, but remain well into negative territory, far from suggesting a bullish run ahead. At this point, the price needs to regain the 1.1245 level to reverse its latest negative tone and be able to rally up to the 1.1290 region”, said Valeria Bednarik, Chief Analyst at FXStreet.

With limited liquidity expected for this Friday, the pair can see some choppy action warns Bednarik. The main event tomorrow will be US GDP data.

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Source:: FX Street