EUR/USD confined in tight range below 20-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 31, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair appears to have stuck like glue in a 10-pips range since the late-Asian trades and continues to search for fresh incentives amid a holiday-quiet European session ahead.

    EUR/USD lacks direction

    Currently, the EUR/USD pair trades almost unchanged at 1.0928, struggling below 20-DMA barrier located at 1.0940. The main currency pair is seen moving back and forth in an extremely narrow range over the last hours, with the bulls underpinned by a softish US dollar tracking the weaker tone in the US treasury yields as markets wind up on the last trading of this year.

    Later today, there is nothing much on the economic calendar except for the US data and hence, limited trading activity is expected until markets hit full desks on Monday.

    Moving onto 2016, Fed’s plan for further rate increases, oil price outlook, more ECB QE etc., are expected to remain the key themes, which will have major impact on the EUR/USD pair.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0946 region (5-DMA). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0921 (1h 200-SMA), below which 1.0902 (Dec 30 Low) could be tested.
    For more information, read our latest forex news.

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