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EUR/USD bounces-off 1.0900, re-attempts 50-DMA

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The renewed selling interest seen around the EUR/USD in early trades faded at 1.0900 levels in mid-Asia, as the US dollar eased-off highs against its major peers.

    EUR/USD trims losses, daily high back on sight

    Currently, the EUR/USD pair trades -0.16% lower at 1.0924, quickly retreating from fresh session struck at 1.0900. Fresh bids emerged for the major at the last and the prices jumped higher in a bid to regain the key hourly 50-SMA support-turned resistance placed at 1.0931.

    The renewed bid tone seen around the EUR can be attributed to the increased demand for safe-haven currencies amid heavy losses in the Asian equities. Japan’s Nikkei is plunging nearly 2%, Australia’s S&P/AX tanks -1.80% while China A50 index slumps 2%.

    Further aiding the recovery in EUR/USD from session lows, the US dollar stalled its corrective rally and trimmed losses against its major competitors. Meanwhile, the major is expected to benefit from the extension of the shorts squeeze as witnessed yesterday, following unusually hawkish ECB policy decision and QE measures.

    While the USD bulls await the US labour markets report for fresh insights on the Fed interest rates outlook. Upbeat NFP report may bolster Dec Fed hike bets and trigger the last leg upwards for the buck.

    EUR/USD Technical Levels


    The pair holds 1.09 handle, with the next hurdle in sight is located at 1.0931 (50-DMA) and from there to 1.0956 (daily high). On the flip side, the immediate support is seen at 1.0850/42 (round number/ Nov 4 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0792 (1h 20-SMA).
    For more information, read our latest forex news.
     

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