Forex: EUR/USD rebound limited to 1.3040 after EMU and US data

FXstreet.com (Barcelona) - The EUR/USD was able to find support at 1.3016 low at its down move on the New York opening after the release of US Chicago Fed data and ahead of EMU confidence and US existing home sales. The rebound reached 1.3040 after the publication of an upside surprise for the Eurozone and a disappointing US housing figure.

The preliminary release of consumer confidence in April rose from -23.50 to -23.30 instead of falling further to -23.85. Data is at its lowest level since July 2012, -21.5. Instead of improving to 5.01M in March, US existing home sales fell from 4.95M to 4.92M, disappointing analysts. February data was revised lower from 4.98M to 4.95. US Chicago Fed National Activity Index fell from 0.76 to -0.23 in March. The February figure was revised higher from 0.44. Consumer confidence in the EMU is expected to drop from -23.50 to -23.85 in April.

FXstreet.com independent analyst Valeria Bednarik adds ECB’s Constancio comments regarding a possible rate cut from ECB next month as a downside pressure for the EUR/USD today, forcing a move towards 1.3000. “The hourly chart shows price well below 20 SMA while indicators head south below their midlines. In the 4 hours chart technical readings are also bearish, with momentum crossing the 100 level and RSI accelerating below 50”, she wrote, adding that a break of 1.3000 should trigger stops and favor a stronger slide in the pair, with 1.2935 then at sight for today.