EUR/USD: Bullish move stalling near 38.2% Fibo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 24, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The uptick in the EUR/USD ran out of steam as it neared 1.0974 (38.2% of Aug high-Dec low), but remains comfortably in the positive territory around 1.0950 levels.

    Hovers around Wednesday’s low

    The pair now trades around the previous day’s high of 1.0956 levels. The pair bounced-off from 1.08 levels after the Fed hiked rates by 25 bps as expected on Dec 17th. However, the gains have been capped around 1.10 levels since the Fed surprised markets with a hawkish Dot chart.

    At the current prices of 1.0956, the pair is almost 9.5% below the last year’s closing price of 1.2099. Hence, a yearly loss for the pair is a done deal.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.0974 (38.2% of Aug high-Dec low), above which the pair could target 1.1006 (50% of 1.1495-1.0517). On the other hand, a break below 1.0940 (61.8% of Mar-Aug rally) would open doors for a drop to 1.0890 (38.2% of 1.1495-1.0517).
    For more information, read our latest forex news.

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