EUR/USD attempts a tepid bounce, above hourly 200-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Having witnessing sharp losses on Tuesday, the shared currency attempts an anaemic recovery against its American peer in the Asian morning.

    EUR/USD tests 10-DMA

    Currently, the EUR/USD pair trades 0.10% higher at 1.0942, extending the recovery from 1.0900 levels. The main currency pair is seen wavering on the bids and tries to recover lost footing in early Asia, hovering above the hourly 200-SMA located at 1.0932, as the USD bulls take breather and consolidate heavy gains before the next bullish leg ahead of the highly anticipated Fed decision.

    On Tuesday, upbeat US CPI print added further to the Fed lift-off expectations and fanned the rally in the US dollar, knocking-off EUR/USD almost 150 pips intraday to just ahead of 1.09 handle. Markets also ignored stronger ZEW numbers from Germany as the attention remains on the Fed event, broadly supporting the greenback.

    Later today, a raft of flash manufacturing and services PMI readings from across the Euro area economies and the bloc’s CPI report will be published while from the US docket, industrial production, manufacturing PMI and housing datasets are lined up for release. However, the Fed rate hike decision is likely to hog the limelight.

    EUR/USD Technical Levels

    The pair trades marginally higher, with the immediate resistance seen at 1.0963/66 (1h 20-SMA/ daily pivot). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0903/00 (Dec 15 Low/ psychological levels), below which 1.0877 (Dec 9 Low) could be tested.

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