EUR/USD dips to 1.3810

FXStreet (Edinburgh) - A sudden bout of risk aversion propelled the greenback to fresh session highs, dragging the EUR/USD to test the 1.3815/10 region.

EUR/USD erases gains

The pair is now posting meager gains, coming down from weekly peaks beyond 1.3860 backed by the initial risk-on context. The pair remains resilient above the 1.3800 handle however, while the FX community started to focus on the preliminary inflation figures for the month of April in the euro area due on April 30th, as the next big risk event for the EUR. In the view of Camilla Sutton, Chief FX Strategist at Scotiabank, “Until sentiment and the net long position shift, and until capital flows ease, it is too early to short the EUR”.

EUR/USD key levels

At the moment the pair is up 0.03% at 1.3822 with the next resistance at 1.3906 (high Apr.11) followed by 1.3935 (high Mar.19) and then 1.3967 (2014 high Mar.13). On the downside, a break below 1.3814 (low Apr.17) would target 1.3807 (low Apr.16) en route to 1.3790 (low Apr.15).