EUR/USD downside opening towards 100-DMA?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Having filled in the bearish opening gap over the last hours, the EUR/USD pair failed to sustain the recovery mode and reverted in the negative territory amid persistent risk-off environment.

    EUR/USD eyes 100-DMA at 1.0897

    Currently, EUR/USD trades -0.07% lower at 1.0924, having posted day’s high at 1.0936 and day’s low at 1.0912. The main currency pair met fresh supply near 1.0935 region and receded lower, as the USD bulls continue to ride higher on the back of the recent streak of bullish US fundamentals, which reinforced hopes for further Fed rate rises this year.

    Moreover, weekend’s comments from ex-BOE Chief Mervyn King also continue to weigh on the sentiment surrounding the common currency. Mr. King noted that the Euro zone is doomed and to revive Britain’s economy, Brexit should be inevitable. However, the losses were curtailed as the risk-averse conditions amid falling stocks, provide some respite to the EUR bulls.

    Next on tap today, the German datasets will be published ahead of the European open, while the US pending home sales and Chicago PMI will be also closely watched for further signs of strength in the US economy.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.0955/64 (1h 20-SMA/ 5-DMA). A break beyond the last, doors will open for a test of 1.0987/1.1002 (50-DMA/ 1h-50-SMA). On the flip side, the immediate support is placed at 1.0897 (100-DMA) below which at 1.0867 (Jan 28 Low) could be tested.
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