30 Apr 2015
EUR/USD rises above 1.12
FXStreet (Mumbai) - The EUR/USD pair rose above 1.12 as the drop in the major Eurozone equity markets is reportedly leading to unwinding of the EUR/USD shorts initiated earlier for exchange rate hedging. The minor drop in the German unemployment further adds to the bullish momentum in the pair.
German unemployment drops
The pair received an additional boost after the date in Germany showed the unemployment dropped by 8K in April, compared to the expected drop of -13K. Meanwhile, the previous figure was revised to 14K. The unemployment rate remained steady at 6.4%.
However, the unwinding of the EUR hedge shorts is cited as the real force behind the rally in the pair.
EUR/USD Technical Levels
The immediate resistance is located at 1.1243 (Feb. 27 high), above which gains could be extended to1.13. On the flip side, a break below 1.12, could push the pair lower to 1.1121 (100-DMA).
German unemployment drops
The pair received an additional boost after the date in Germany showed the unemployment dropped by 8K in April, compared to the expected drop of -13K. Meanwhile, the previous figure was revised to 14K. The unemployment rate remained steady at 6.4%.
However, the unwinding of the EUR hedge shorts is cited as the real force behind the rally in the pair.
EUR/USD Technical Levels
The immediate resistance is located at 1.1243 (Feb. 27 high), above which gains could be extended to1.13. On the flip side, a break below 1.12, could push the pair lower to 1.1121 (100-DMA).