EUR/USD drops further to test 1.09, USD spikes higher

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The sell-off in the EUR/USD extends further towards 1.09 handle in the mid-European session, as the greenback regains lost ground and jump higher across the board.

    EUR/USD breaches Wednesday’s low

    Currently, the EUR/USD pair drops -0.28% to fresh session lows of 1.0901, accelerating losses on a break below hourly 200-SMA at 1.0924. The major’s recovery from lows met fresh supply and the prices dived deeper in the red on the back renewed bids seen in the US dollar against its major peers. The USD index now rises to new daily highs at 98.45, recording a gain of 0.14% on the day.

    More so, stabilizing oil prices and rising demand for the greenback ahead of the US macro data triggered risk-on moods in markets and thereby, collaborated to the further downside in the euro-dollar pair. Later today, the US calendar offers the weekly jobless claims and Chicago PMI data, the last set of numbers for this year.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is at 1.0945 (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 1.0885 (daily S2), below which 1.0869 (Dec 3 Low) could be tested.
    For more information, read our latest forex news.

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