EUR/USD dips to 1.1175 ahead of US economic releases

By FXStreet The greenback has gained traction in last couple of hours with the EUR/USD pair trimming some of its gains from 1.1192 to currently trade at 1.1175 ahead of the US durable goods orders and weekly jobless claims data.

Durable goods orders for the month of April are expected to register a modest growth of 0.3%. A similar gain of 0.3% is expected in core durable goods orders, which excludes transportation items. Meanwhile, weekly jobless claims are expected to drop further to 275k from previous week’s reading of 278k.

The pair on Wednesday dipped to nearly 3-month low level of 1.1129 before staging a minor recovery, which extended beyond 100-day SMA to 1.1192 on Thursday. Traders, however, seemed to have turned cautious ahead of the US releases as strong numbers would further increase the prospects of a Fed rate-hike in June, eventually providing further boost to USD bulls.

Technical outlook

Jason Sen, Director DayTradeIdeas.com notes, “EURUSD first resistance at 1.1175/80 is a challenge but above here strong resistance at 1.1200/10 is the main challenge for bulls today but there is also quite strong resistance at this week’s high of 1.1240/45 so we could top out here if we reach this far.”

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Source:: FX Street