EUR/USD: Bulls unperturbed by German data, around 1.1250

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone on the EUR remains intact, keeping EUR/USD side-lined near the mid-point of the 1.12 barrier, as the bulls were little impacted by the dismal German trade figures.

    EUR/USD stuck around 1.1250

    The EUR/USD pair trades 0.13% higher at 1.1253, unable to extend beyond 1.1262 levels. The European currency keeps its recovery mode versus the US dollar after the release of the disappointing German trade balance data.

    The trade data revealed that the surplus shrank in Sept to EUR15.3 billion in Aug versus an expected surplus of EUR 19.0 billion. In July, EUR 25.0 billion surplus was generated.

    While, the gains in the EUR/USD pair also could be partly attributed to the Tsipras government winning the confidence vote following last month’s electoral win, and ahead of a crucial first review of its international bailout.

    Attention now remains on the ECB minutes with traders awaiting more cues on the QE program after the ECB Chief Draghi noted last month that the central bank was ready to do more.

    EUR/USD Technical Levels

    On the upside, the major faces immediate resistance near 1.1285-1.1290 region (Sept 29, Oct 5, Oct 7 High) beyond which post-NFP highs at 1.1319, could act as a strong hurdle. A breach of the last could open doors for a test of 1.1400 (round number). While the immediate support is located at 1.1225 (10-DMA), below which 1.1200 (psychological levels) could act as a strong support. A failure to resist the last, the prices could drown to 1.1147 (100-DMA).
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