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EUR/USD attempts a tepid bounce to 1.0960, Draghi, PMIs eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/USD pair tested Tuesday’s low in mid-Asia and rebounded higher heading into the early European trades; on fading risk-sentiment as the Asian equities are seen paring gains.

    EUR/USD bounces-off Tuesday’s lows

    The EUR/USD pair trades -0.08% lower at 1.0955, struggling hard to extend beyond the last. The main currency pair tries to recover lost ground and attempts a tepid bounce towards daily pivot placed at 1.0978, only to find fresh offers near 1.0955/60 band in last hours.

    The shared currency remains pressured versus the US dollar as the divergent monetary policy path between both continents became more prominent after the ECB President Draghi reiterated on late Tuesday, that he is ready to act if necessary at the Dec meeting.

    While markets are eagerly awaiting Friday’s employment report from the US to seal a Dec Fed rate hike deal, should the data confirm the ongoing strength in the US economic recovery.

    Moving on, we have more of Draghi coming in ahead of a raft of final services PMI from Euro zone and US ADP data later today. While the main focus now remains on the Fed Chair Yellen’s testimony scheduled post-US open.

    EUR/USD Technical Levels

    The pair recovers from lows and heads higher with the next hurdle is located at 1.0997/1.1000 (10-DMA/ psychological levels). A break above the last, the prices could climb further towards 1.1019/21 (daily R1 + 1h 200-SMA) and from there to 1.1053 (Nov 2 High). While to the downside, the immediate support seen at 1.0903/00 (Oct 29 Low/ round number). Selling pressure will intensify below the last, dragging the pair towards 1.0840 (Aug lows) and below that 1.0800 (psychological levels) could be exposed.
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