EUR/USD drops to 1.0770 post-CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The single currency has breached below the 1.0800 handle today vs. the greenback, with EUR/USD slipping towards the 1.0770 area, fresh daily lows.

    EUR/USD weaker on poor EMU data

    The pair has seen its downside renewed after consumer prices in the euro region have disappointed expectations for the month of December, rising at an annual pace of 0.2% vs. 0.3% forecasted. Core prices have followed suit, rising 0.8% over the last twelve months vs. 0.9% anticipated.

    Spot keeps shedding ground in the meantime, approaching the mid-1.0700s amidst increasing buying interest around the US dollar.

    EUR/USD levels to consider

    At the moment the pair is down 0.56% at 1.0768 and a break below 1.0764 (23.6% Fibo of 1.1496-1.0538) would expose 1.0538 (low Dec.3) and finally 1.0456 (2015 low Mar.16). On the other hand, the next resistance lines up at 1.1046 (200-day sma) followed by 1.1129 (61.8% Fibo of 1.1496-1.0538) and then 1.1164 (downtrend from 1.1713).
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