EUR/USD breaks above 1.1000 as US dollar plummets

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/USD broke above 1.0995 and jumped to 1.1025, reaching the highest level since November 3. The pair remains near the highs holding a bullish tone as the US dollar tumbles across the board.

    Greenback, measured by the Dollar Index (DXY) is falling more than 1%. The Japanese yen is the best performer in the currency market boosted by the decline of USD/JPY below key technical levels.

    EUR/USD to test relevant MA

    Last Thursday, EUR/USD surged after the decision of the European Central Bank to lower the deposit rate and to extend the duration of the purchase program; market expectations were for more stimulus and the euro jumped. EUR/USD soared more than 300 pips and rose above the 20-day MA. Now the pair appears to be headed to toward the 100-day MA that stands at 1.1060 and also to the 200-day MA at 1.1030. Above the next resistance might be seen at 1.1100 (Sept lows, Oct 28 high).

    On the downside, 1.0995 has now become the immediate support, followed by 1.0940 (short-term uptrend line) and 1.0905 (Dec 08 high).

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