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EUR/USD erases losses, back above 1.0850

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - EUR/USD rose during the last hours and recently rallied to 1.0876, reaching the highest level since the European session. The euro rose as stocks in Wall Street hit fresh lows and while the WTI barrel reached momentarily levels under $30.

    As crude oil and stocks rebound from the lows, the euro loses momentum. Currently, the pair trades at 1.0855/60, around the same level it closed yesterday and in the middle point between today’s high (1.0900) and low (1.0818).

    The Dow Jones is now up by 0.25% at 16,415 after rebounding from 16,320. After the opening bell, it climbed to 16,590 before turning to the downside. Crude oil now stands at $30.50 while gold moved off daily lows and the ounce rose above $1090.

    EUR/USD technical outlook

    According to Valeria Bednarik, Chief Analyst at FXStreet, the EUR/USD pair has been consolidating between Fibonacci levels ever since the latest ECB's meeting: “The pair fell down to the 61.8% retracement of the December rally during the past week, but bounced back, with selling interest containing rallies around the 23.6% retracement of the same rally. As long as those extremes hold, the pair has little scope to set a clear directional strength”.

    The 4 hours chart, notes Bednarik, shows a bearish potential increase with price below relevant moving averages and the Momentum indicator headed below 100.
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