EUR/USD: Bulls attack 61.8% Fibo hurdle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD is being offered again in Europe, courtesy of which the EUR/USD pair is attempting to chew through offers placed around 1.1256 (61.8% Fibo of 1.1714-1.0517).

    Will stock rally cap gains in EUR?

    It will be interesting to see if the funding currency EUR runs into offers amid Fed driven risk-on action in the European equities. Currently, Stoxx 50 futures are indicating the major European indices are likely to open 0.60% higher on the day.

    However, broad based USD selling is keeping the bid tone around EUR/USD pair intact. Unwinding of dollar longs initiated ahead of Fed may keep EUR on the front foot; but, stock gains may make it difficult for the pair to topple the hurdle seen at 1.1256.

    First attempt to take out 1.1256 appears to have failed as the pair has eased to 1.1240 levels. Apart from the stock market activity and broad based USD selling, the pair may also be influenced by EUR CPI release.

    EUR/USD Technical Levels

    The spot could target 1.1293 (23.6% of May 2014 high-Mar 2015 low), if the immediate hurdle at 1.1256 (61.8% of 1.1714-1.0517) is taken out. On the other hand, a breakdown of immediate support at 1.1186 (rising trend line drawn from Mar 2015 low-April 2015 low and extended) would expose 1.1115 (50% of 1.1714-1.0517).
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