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EUR/USD closes at session highs but posts weekly loss

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/USD climbed to fresh daily highs with less than an hour away to the closing bell, turning positive for the day but still headed for a weekly loss, although quite modest considering that the Federal Reserve raised rates for first time in nearly a decade.

    EUR/USD came under pressure after the Fed meeting, but the decline was contained by the 1.0800 level, confining the pair to phase of consolidation over the last sessions as markets enter holiday mode.

    Nevertheless, EUR/USD managed to reach a daily high of 1.0869 and gears up for its first daily gain after three losses.

    From a wider perspective, EUR/USD holds near 2015 lows and policy divergences - with Fed moving toward normalization and the ECB still in the easing cycle - are likely to keep the pair undermined, with 1.0500 as key medium-term support level.

    EUR/USD levels to watch

    In terms of short-term levels, next resistances line up at 1.0911 (50-day SMA), 1.1037 (200-day SMA) and 1.1055/59 (100-day SMA/Dec 15 high) ahead of 1.1085 (50-week SMA). On the flip side, supports are seen at 1.0795 (Dec 7 low), 1.0787 (21-day SMA) and 1.0635 (Dec 1 & 2 highs).
    For more information, read our latest forex news.

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