EUR/USD attempting recovery towards 1.06, will it sustain?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/USD pair extends recovery from near multi-month lows as we progress towards the early European trades, with markets now awaiting German retail sales and CPI data for fresh cues.

    EUR/USD tested Friday’s low and rebounds

    Currently, the EUR/USD pair trades modestly flat at 1.0589, recovering from session lows struck at 1.0571 in early Asia. The major attempts an anaemic recovery in anticipation of an uptick in retail sales and consumer prices in the Euro zone’s economic powerhouse, which may offer the much-need respite to the EUR bulls.

    Germany’s CPI growth is expected to show a 0.1% advance m/m in Nov, after a flat result reported in Oct, while the Oct retail sales are predicted to show a 0.3% rise on a monthly basis, following the flat result in September.

    However, the recovery is expected to remain short-lived as the underlying monetary policy divergence between both continents remain in focus heading into this week’s ECB meeting.

    After a holiday-shortened last week, Monday’s trading calendar offers significant economic news from Germany and the US. However, the macro data may have limited impact as all eyes remain on the ECB decision.

    EUR/USD Technical Levels

    The pair wavers above 1.06 handle, with the immediate support seen at 1.0567 (Nov 27 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April Low). While to the upside the next hurdle in sight is located at 1.0599 (5-DMA) and from there to 1.0621/29 (1h 100-SMA/ 10-DMA).
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