EUR/USD attempting gains as Stoxx 50 futures drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/USD pair clocked a fresh session high of 1.1038 as the pan-European Euro Stoxx 50 index point to China-led risk-off ahead.

    Eyes 200-DMA

    The spot appears on track to test 200-DMA at 1.1045 if the European equities open lower as pointed out by Stoxx 50 futures; which currently trade 0.60% lower. The buying interest in the risk assets dropped in Asia after China data showed sharp drop in exports as well as imports.

    The spot currently trades around 1.1030. Next trigger could come from Carney’s speech and possible reaction in the EUR/GBP cross. Traders may look through Eurozone GDP number if the risk-off worsens as day progresses.

    EUR/USD Technical Levels

    The immediate hurdle is seen at 1.1045 + 1.1048 (200-DMA + 38.2% of 1.0517-1.1376), ahead of the resistance at 1.1087 (Sep 3 low) and 1.11 (psychological number). On the other hand, a break below 1.10 (psychological figure + daily low) would expose 50-DMA 1.0978, under which losses could be extended to 1.0922 (100-DMA).
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