EUR/USD subdued trading below 1.1400 handle

By FXStreet The EUR/USD pair’s attempted recovery from lower level now seems to face difficulty in building momentum beyond 1.1400 handle despite of better-than-expected German factory orders and Sentix investor confidence index.

Date released on Monday showed, factory orders in Germany rose 1.9% in March as compared to a decline of 0.8% in the previous month and expectations of an increase of 0.6%. Moreover, investor’s Confidence in the Euro region, tracked by the Sentix index, also surpassed consensus expectations by printing 6.2 vs. 6.1 initially projected.

The pair had a muted reaction to the data points as ECB Vice-President Vitor Constancio remained concerned over the regions low headline inflation. Even the down-slide was limited as Federal Reserve board member Evans reaffirmed Fed’s wait and watch stance on concerns over outlook for inflation.

The pair has maintained its moves within a 45-50-pips narrow trading range between 1.1375 and 1.1420 and only a follow through movement beyond the current trading range would provide fresh trading opportunities.

Technical levels to watch

Below 1.1375 (lower end of day’s trading range), the pair is likely to find immediate support near 1.1355-50 confluence region. This 1.1355-50 area comprises of 20-day SMA and 23.6% Fibonacci retracement level of 1.0522-1.1616 up-swing and hence, …read more

Source:: FX Street