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EUR/USD bounces-off 20-DMA again, reverts to 1.0900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - EUR/USD’s retreat from near 1.0950 found fresh bids once again at 20-DMA, and the prices reverted to 1.09 handle post-European open.

    EUR/USD hovers around 1.0900

    The main currency pair remains heavily offered this session mainly on the back of broad based US dollar strength, triggered by the massive rally in USD/JPY. Moreover, the European stocks also tracked their Asian counterparts higher and brought in renewed risk-on wave into markets, diminishing the safe-haven bids for the euro.

    Germany’s DAX rallies +1.20%, the UK FTSE gains +1.13%, while the pan-European benchmark, the Euro Stoxx 50 jumps +1.23%.

    Also, the euro came under fresh selling pressure against its American counterpart after the German retail sales came in worse-than market expectations. Retail turnover fell 0.2% m/m in December, down from the 0.4% increase seen in Nov, and far below market expectations of 0.4% growth.

    Attention now turns towards the Euro zone flash CPI estimates due later shortly, while the main highlight for today remains the US GDP numbers. The Euro zone CPI for January is expected to pick up from 0.2% to 0.4% y/y. The core gauge is likely to remain unchanged at 0.9%.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.948/69 (Jan 28 & 21 High). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0885/74 (20-DMA/ 1h 200-SMA), below which 1.0850/49 (psychological levels/ Jan 27 Low) could be tested.
    For more information, read our latest forex news.
     

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