Draghi does it again, EUR/USD below 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The ECB President Draghi jawboned EUR again, pushing the EUR/USD pair well below its 50-DMA located at 1.0821.

    Trades around 1.08

    The spot hit a two-week low of 1.0777 before recovering to trade around 1.08 levels. ECB’s Draghi left the doors wide open for more easing in December and markets responded as they always do- by offering EUR across the board.

    The currency may remain under pressure as the US equity futures are pointing to a positive open. Thus, the carry unwind could come to a halt and keep the EUR weak.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.0821 (50-DMA), above which the pair could test 1.0890 (38.2% of 1.1495-1.0517). On the other hand, a break below 1.0777 (daily low) would open doors for a drop to 1.0747 (23.6% of 1.1495-1.0517).
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