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EUR/USD better bid above 1.08 handle on softer USD

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/USD pair is on a gradual recovery mode in the mid-Asian trades, having regained 1.08 handle on the back of broad based US dollar weakness.

    EUR/USD flirts with hourly 20-SMA

    Currently, the EUR/USD pair trades 0.15% higher at fresh session highs of 1.0815, taking on the recovery from 1.0790 levels. The main currency pair caught a fresh bid tone and swung back above 1.08 handle after the US dollar corrected lower against its major competitors after Friday’s rally. The US dollar index now trades at 99.47, down -0.13%, retreating from 99.65 region.

    Moreover, the shared currency is seen making tepid-recovery attempts after three back-to-back sessions of losses induced by the surprisingly dovish ECB, with Draghi leaving doors open for further easing in March. Looking ahead, markets await the German IFO surveys to provide fresh incentives on the EUR moves, while ECB Chief Draghi’s speech due later in the NY session will be closely eyed. Meanwhile, the Fed decision due on Wednesday will probably remain the key highlight for this week.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0844/50 (1h 50-SMA/ round number). A break beyond the last, doors will open for a test of 1.0900 (round number/ daily high). On the flip side, the immediate support is placed at 1.0803 (Jan 13 Low), below which 1.0787/77 (daily S2/ Jan 21 Low) could be tested.
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