EUR/USD challenging lows around 1.0870

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The offered tone is now picking up pace around the single currency, sending EUR/USD to the area of daily lows in the 1.0875/70 band.

    EUR/USD capped above 1.0900

    After an ephemeral test of the 1.0920 area following the cautious tone from yesterday’s FOMC statement, the pair has embarked in a correction lower to the current 1.0870 region ahead of several releases in the euro area and Germany.

    In fact, EMU’s Consumer Confidence and Economic Sentiment are next on tap, while Germany will publish its preliminary inflation figures for the current month later in the session.

    Across the pond, Durable Goods Orders, Pending Home Sales and Initial Claims will take centre stage.

    EUR/USD levels to watch

    The pair is now retreating 0.13% at 1.0878 and a breach of 1.0777 (post-ECB low Jan.21) would expose 1.0737 (38.2% Fibo of 1.0538-1.1059) and then 1.0709 (low Jan.5). On the upside, the initial barrier aligns at 1.0977 (100-day sma) followed by 1.1055 (200-day sma) en route to 1.1065 (5-month downtrend).
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