Forex: EUR/USD testing lows after French data

FXstreet.com (Barcelona) - The shared currency retreated to the vicinity of 1.3090 after the French Current Account deficit narrowed to €4.9 billion during February from €5.0 billion in the previous month, in a context where market participants seem to be biased towards some profit taking.

“US initial jobless claims came out strong but this did not lead to overall dollar strength and EUR/USD is still correcting higher as presumably trading accounts are reducing short positions following the recent performance of the European peripheral bond market”, commented S.Holbek, Senior Analyst at Danske Bank.

At the moment, the cross is flat at 1.3099 with the next hurdle at 1.3138 (high Apr.11) ahead of 1.3140 (MA55d) and then 1.3150 (MA100d).
On the flip side, a breakdown of 1.3044 (low Apr.11) would then target 1.3006 (low Apr.9) en route to 1.2980 (MA10d).