EUR/USD drops sharply to 1.1080 as USD bolts higher

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/USD pair wiped out gains and turned negative in the European session, breaking below the 1.1100 support yet again, as the US dollar regained ground across the board.

    EUR/USD rejected at 1.1120

    Currently, EUR/USD trades -0.17% to fresh session lows of 1.1082, having failed to resist above 1.11 barrier. The main currency pair’s tepid bounced faded near daily pivot at 1.1120, and the prices slipped back below 1.11 handle, now launching an attack towards 200-DMA located at 1.1041.

    The major ran through fresh sellers last hours after the US dollar picked-up significant strength against its six major peers on waning risk-off moods, as the European stocks are seen paring losses. Germany’s DAX is down -0.50%, the UK’s FTSE loses -0.60%, while the pan-European benchmark, the Euro Stoxx 50 drops -0.50%.

    The US dollar is seen extending higher against the single currency as markets are betting on a hawkish surprise from the Fed tomorrow, while the upcoming US retail sales and PPI data due later in the NY session may have limited impact on the major. Meanwhile, the US dollar index jumps 0.26% at fresh session highs of 96.86.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1130/41 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1050/41 (psychological levels/ 200-DMA) below which at 1.1014/00 (daily S2) could be tested.
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