EUR/USD: Offered near 50-DMA, but keeps 1.1300

The overnight recovery in EUR/USD failed once again near 1.1320 region in early dealings, sending the major back near 1.13 handle, where it spent last few hours consolidating.

EUR/USD lacks drivers amid holiday-thinned trading

Currently, EUR/USD trades modestly lower at 1.1307, having found solid bids around 1.1304/03 band. The main currency pair is seen consolidating the recovery and remains in a flat-lining amid a lack of fresh catalysts as most major European markets are closed today in observance of Whit Monday holiday.

However, the recovery looks fragile as markets continue to cheer the upbeat retail sales data and consumer sentiment from the US released last Friday, which keeps the USD underpinned at the expense of the common currency. Both the total retail sales and core figures rebounded in April and also bettered expectations, providing the much-needed impetus to the US economic recovery.

Moving on, in absence of any economic news from the Euroland, attention turns to the US calendar, with the regional manufacturing index and NAHB housing market index on the cards for fresh incentives. However, the main risk events for the major remain the CPI figures from both continents, while the FOMC meeting minutes will also grab the eyeballs in the week ahead.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1347/69 (5 & 10-DMA). A break beyond the last, doors will open for a test of 1.1400 (round number). On the flip side, the immediate support is placed at 1.1300 (key support) below which at 1.1281/71 (May 13 & Apr 29 Low) could be tested.