EUR/USD: Bulls defeated at 1.14, reverts to 1.1380

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 12, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - A fresh bout of buying interest around the EUR/USD pair faded just few pips shy of 1.14 handle in last hours, with the major now reverting to H1 S1 located at 1.1377 levels.

    EUR/USD capped below 1.1400

    The EUR/USD pair trades 0.21% higher at 1.1383, unable to extend beyond 1.1400 hurdle. The major eased-off fresh multi-week highs reached at 1.1397 and is now seen gathering in a bid to retest 1.14 barrier.

    The EUR/USD rally was triggered by renewed selling wave in the European stocks, driving the DAX also into losses for a brief time. However, the European indices appear to have found bottom and are now paring losses, with the DAX back in the green zone.

    The pan-European benchmark, the Euro Stoxx drops -0.20% to 3,243, recovering from 3,230 lows while the DAX flipped to gains and trades +0.21% at 10,117, having struck lows at 10,083.

    However, the major holds near multi-week peaks as the recent comments from ECB Coeure also boosted the shared currency across the board. ECB’s policymaker Benoit Coeure noted that it’s too early to decide on the further QE expansion.

    The main currency pair is likely to track the sentiment on the European indices amid a data-deficient as well tight trading session today.

    EUR/USD Technical Levels

    The pair holds above all its daily major moving averages while the RSI remains above the mid-lines, which backs the case for further upmoves. Hence, to the upside, the major faces immediate resistance at 1.1400 (round number), beyond which a test of 1.1442-60 (Sept 17 & 18 Highs) would become imminent. While the immediate support is located at 1.1366/67 (hourly 20-SMA & H1 S2), a breach of the last would expose 1.1300 (psychological levels).
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