EUR/USD takes a breather, clings to mid 1.12 area

EUR/USD is taking a breather around 1.1250, having staged an impressive comeback from yesterday’s lows but unable to set a lasting direction in the absence of news or catalysts.

The dollar barely reacted to the latest string of US data. Housing starts fell 0.3% from a month earlier to a seasonally adjusted annual rate of 1.164 million in May, while building permits increased 0.7% to 1.138 million, from a revised April rate of 1.130 million.

On the other side of the Atlantic, EMU’s Current Account surplus has widened to €36.2 billion during April vs. €26.3 billion in the previous month, while Wages in the euro area rose at an annualized 1.8% during Q1. Looking ahead, ECB Draghi is due to speak later on the day.

EUR/USD levels to watch

As for technical levels, EUR/USD immediate supports could be found at 1.1130 (Jun 16 low), 1.1102/00 (200-day SMA/psychological level) and 1.1057 (Mar 16 low). On the flip side, resistances are seen at 1.1300 (50-day SMA/psychological level), 1.1320 (Jun 10 high), 1.1415 (Jun 9 high) and 1.1445 (May 11 high).