EUR/USD: Bears take a breather, retreats from 10-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The renewed selling pressure in the EUR/USD pair in last hours found good support near 10-DMA and retraced towards the mid-point of the 1.12 handle.

    EUR/USD bounces-off 10-DMA

    The EUR/USD pair trades -0.25% lower at 1.1244, recovering from fresh session lows reached at 1.1222 on European open. The major bounced-off lows, although remains pressured amid rallying European stocks on positive corporate and higher resource stocks.

    Among the major European indices, the pan-European benchmark, the Euro Stoxx 50 jumps 0.91% to 3,250 while the German DAX rallies over 1% to 10,012.

    Moreover, the latest weak German industrial production data also continues to weigh on investors’ sentiment. Industrial production in Germany fell 1.2% m/m in August, after a 1.2% growth seen in the July according to Destatis. Markets had expected a 0.2% gain.

    Meanwhile, the main currency pair will continue to track the sentiment on the European stocks as the session ahead holds nothing of relevance in terms of economic news.

    EUR/USD Technical Levels

    On the upside, the major faces immediate resistance near 1.1285-1.1290 region (Sept 29, Oct 5 and Today’s High) beyond which post-NFP highs at 1.1319, could act as a strong hurdle. A breach of the last could open doors for a test of 1.1400 (round number). While the immediate support is located at 1.1220 (10-DMA), below which 1.1200 (psychological levels) could act as a strong support. A failure to resist the last, the prices could drown to 1.1147 (100-DMA).
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