EUR/USD: Bears guarding 1.0980 fencing once again

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Having peaked around 1.0990 levels in the last NY session, EUR/USD drifted lower in the overnight trades, only to find fresh bids near hourly 50-SMA (1.0963) support in early Asia and reverted to familiar range around 1.0980 region.

    EUR/USD: Tough resistance appears once again at 1.0980-85 zone

    Currently, the EUR/USD pair rises 0.08% to 1.0976, retreating from daily highs reached at 1.0983 levels. The main currency pair maintains the bid tone in Asia and fights hard to break through 1.10 barrier, with the broad based US dollar weakness collaborating to the upside in the pair. The USD index trades -0.08% lower at 97.92.

    However, further upmoves lack momentum in light of no major economic drivers ahead, as the macro calendar is expected to remain empty until the NY session.
    Moreover, thin trading and irregular volatility also restricts further upside in EUR/USD amid holiday-thinned markets as we progress towards the New Year.

    Also, higher Asian equities and modest recovery seen across the commodities space keep the market sentiment lifted, diminishing the demand for the funding currency, the euro.

    Looking ahead, markets will continue to track the sentiment on the global equities ahead of a slew of US economic releases due later today. The US goods trade balance, S&P/CS Composite-20 HPI y/y and CB Consumer Confidence data will fill in an otherwise quiet trading calendar.

    EUR/USD Technical Levels

    The pair extends higher and finds the immediate resistance is seen at 1.1000 region (round umber). A break beyond the last, doors will open for a test of 1.1020 (100-DMA). On the flip side, the immediate support at 1.0963 (1h 50-SMA), below which 1.0942 (Dec 28 Low) could be tested.
    For more information, read our latest forex news.

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