EUR/USD erases intraday losses after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/USD recovered from lows and erased intraday losses at the beginning of the American session as the greenback lost momentum and then weakened on the back of disappointing US data.

    US Markit services PMI fell to 49.8 in February, below the 53.5 expected and below the 50.0 threshold that indicates contraction in the sector. The Composite PMI also fell to 50.1 from 53.2 in January. Meanwhile, new home sales dropped by 9.2% in january, more than doubling expectations of a 4.4% fall.

    EUR/USD extended its recovery from a low of 1.0957 where the 100-day SMA offered support, and climbed to a marginal daily high of 1.1027 in recent dealings. At time of writing, the pair is trading at 1.1020, virtually unchanged on the day.

    EUR/USD levels to watch

    As for technical levels, immediate supports are seen at 1.0957 (100-day SMA) and 1.0903/00 (Feb 3 low/psychological level) ahead of 1.0882 (Feb 2 low). On the other hand, resistances could be found at 1.1048 (200-day SMA), 1.1138 (Feb 19 high) and 1.1178 (Feb 17 high).
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