EUR/USD remains capped by 1.3240

FXstreet.com (Córdoba) - The EUR/USD rose to retest daily highs in the vicinity of 1.3240 at the beginning of the American session following the release of mixed US data.

EUR/USD erases losses

However, EUR/USD lacked momentum to break above that level and pulled back slightly to currently trade around 1.3220, where it is 0.2% above its opening price. EUR/USD managed to reverse early losses, having fallen to a low of 1.3165 during the European trade as the shared currency failed to benefit from upbeat German Ifo surveys and weakened instead.

EUR/USD lacks clear direction

From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that the hourly chart shows price going back and forth around its 20 SMA, currently presenting a positive tone coming from technical readings. “In the 4 hours chart however, indicators remain flat, reflecting the clear lack of direction the pair has”, says the analyst. “Only steady gains above 1.3250 area will favor a stronger upward continuation, while 1.3140 is the key support to follow over the upcoming hours”.

Flash: EUR/USD strength to slow – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank said EUR/USD’ s current strength is expected to terminate ahead of the 78.6% Fibonacci retracement at 1.3275.
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