EUR/USD bounces-off 1.0960 amid negative equities, ECB eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The gradual descent seen in the EUR/USD pair appears to have stalled as the bulls were relieved by the negative start to the European markets.

    EUR/USD finds support ahead of 10-DMA at 1.0954

    Currently, EUR/USD drops -0.24% to 1.0976, having posted fresh session lows at 1.0961 some minutes ago. The main currency pair catches a fresh bid tone post–European open and attempts a tepid-recovery towards 1.10 handle. The demand for the safe-haven euro received fresh impetus after the European stocks witnessed a poor start, as cautiousness prevails ahead of the highly influential ECB monetary policy decision.

    Markets are anticipating wild swings on the ECB decision, as uncertainty persists whether the central bank will slash depo rates by 10 bps or more. While the extension of the QE program and downward revision to the 2016 inflation forecasts is also expected by the markets.

    Analysts at ANZ noted, "Updated macroeconomic projections are expected to include a sharp reduction in the 2016 inflation forecast from 1.0% to 0.5-0.7%, largely on the back of the sharp fall in energy prices.”

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1000 (psychological levels). A break beyond the last, doors will open for a test of 1.1034/42 (daily R1/ 200-DMA). On the flip side, the immediate support is placed at 1.0941/40 (daily S1/ 1h 200-SMA) below which at 1.0911 (100-DMA) could be tested.
    For more information, read our latest forex news.

Share This Page

free forex signals