EUR/USD attacks 1.1000 as European stocks trade firmer

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - A renewed bout of selling interest hit the EUR/USD pair in the mid-European session, with the major now poised to test 1.10 barrier.

    EUR/USD testing daily lows

    The EUR/USD pair trades 0.06% at 1.1011, having dropped to fresh session lows at 1.1006 few minutes ago. The major once again failed near 1.1050 levels and dropped nearly 40 pips as the rising European stocks lifted by upbeat Euro zone and UK PMI readings, continue to weigh on the safe-haven appeal of the common currency.

    The stocks on the European bourses wiped-out early losses and extends to the upside, with the DAX gaining 0.66%, Euro Stoxx up 0.36% while the UK FTSE keeps losses, despite the UK factories hitting 16-month highs.

    Data-wise, the final manufacturing PMI for the euro zone came in at 52.3 points in Oct, better than the preliminary reading of 52.0. While the German final manufacturing PMI also firmed up to 52.10 in Oct versus 51.6 flash estimates.

    Meanwhile, markets will continue to digest a series of Euro zone PMI reports and take cues from the European stocks while the focus now remains on the US ISM manufacturing PMI reading due later in the US session.

    EUR/USD Technical Levels

    The pair tests 1.10 handle, with immediate support seen at 1.0964 (Oct 30 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0900 (round number) and below that 1.0840 (Aug lows) could be exposed. While to the upside, the immediate resistance is placed at 1.1039/49 (daily R1 + high). A break above the last, the prices could climb further towards 200-DMA at 1.1084 and from there to 1.11 handle.
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