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EUR/USD catches fresh bid-tone, re-takes 1.1000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - After bottoming near 5-DMA at 1.0980 in the opening trades, EUR/USD tries to recover lost ground and reclaim 1.10 handle, although meets resistance ahead of hourly 10-SMA on every attempt to the upside.

    EUR/USD aims to extend beyond 1.1005 barrier

    Currently, the EUR/USD pair trades 0.08% higher at 1.1003, having bounced-off lows struck at 1.0985, just ahead of 5-DMA support. A renewed bout of selling wave hit that the US dollar last hours, sent the EUR/USD pair back above 1.1000, as the mixed performance on the Asian equities dent the sentiment around risk currencies such as the greenback.

    Moreover, the major continues to recover the ECB-induced sharp losses and remains in a consolidative mode within 1.0920-1.1050 over the past few trading sessions, as markets turn cautious ahead of the much-await Fed rate hike decision due tomorrow. Markets have already priced-in a 10-25 bps Fed rate rise; although fresh cues on the future course of policy tightening (DOTS plan) by the US central bank will remain the main focus.

    Later today, the German ZEW economic sentiment and the US CPI data will be closely watched for further USD moves ahead of Wednesday’s flash PMI readings and CPI report from the Euroland and the main highlight for this month – the Fed decision.

    EUR/USD Technical Levels

    The pair trades marginally higher, with the immediate resistance seen at 1.1029/33 (Dec 10 & 11 High). A break beyond the last, doors will open for a test of 1.1067 (100-DMA). On the flip side, the immediate support is placed at 1.0980 (5-DMA), below which 1.0943 (10-DMA) could be tested.

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