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EUR/USD breaks below 38.2% Fibo of post-ECB move

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/USD pair is trading below 1.0852 (38.2% Fibo of 1.0517-1.1060) as the minor uptick above 1.0875 levels ran out of the steam.

    Markets continue to bid USD

    The Greenback remains in demand after the Fed Dot Chart released yesterday hinted at 4 rate hikes in 2016. This surprised markets as the Fed was widely expected to indicate a slow path of tightening. Consequently, the EUR/USD failed to extend the minor recovery seen in early Europe and fell below 1.0852 levels.

    The weaker-than-expected German IFO data did not help matters either. The ECB monthly bulletin also turned out as a non-event for the markets. As of now, the pair trades around 1.0840 levels and eyes US weekly jobless claims figure.

    EUR/USD Technical Levels

    The immediate support is seen at 1.0796 (Dec 7 low)-1.0788 (50% of post-ECB rally), under which the pair could drop to 1.0748 (23.6% of 1.1495-1.0517). A break above 1.0852 (38.2% of 1.0517-1.1060) could open doors for a rise to 1.0890 (38.2% of 1.1495-1.0517).
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