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EUR/USD: consolidated and awaits China opening

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/USD is currently consolidating after a surge to the upside in risk-off markets in early Asia.

    The Yen took the centre stage and pairs followed suit. EUR/USD jumped from 1.0930 territory to 1.0970 highs. The price has scaled back to recoup those losses while markets are jittery before China comes back to the table again this week.

    We will see the open shortly and Chinese Yuan fix to set the scene for today's trading ahead. In the absence of key data this week, the recent Nonfarm Payrolls should keep the greenback in favour and limit the euros advance fundamentally while markets continue to price in further rate hikes to come from the Fed later in the H1.

    EUR/USD levels

    Technically, EUR/USD is testing upside levels, but there is strong resistance ahead at 1.10/1.060 where the 200 DMA at 1.1043 is located. Through there, the next key resistance remains the 1.1095/1.1138 2014-2016 downtrend and 50 week ma at 1.1038. On a reversal, or a continuation of the broader downtrend, the1.0523 recent low remains compelling.
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