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EUR/USD extending recovery from August lows, near 1.0870

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - EUR/USD extends its overnight recovery mode in late-Asian trades, gradually retreating from the lowest levels since August, as the USD bulls corrects lower against its major peers.

    EUR/USD supported at 1.0840 levels

    The EUR/USD pair trades 0.07% higher at 1.0873, with the daily pivot located at 1.0890 in sight. The main currency pair extends its gradual ascent and now tries to overcome the hourly 10-SMA hurdle placed at 1.0877 levels as the broad based US dollar retreat lends a helping hand to the tepid-recovery.

    Central bankers’ speeches dominated on Wednesday, with contrasting views on both sides of the Atlantic boosting the demand for the US currency. ECB Chief Draghi reiterated on late Tuesday that he was ready to do more in Dec while in the last US session, the Fed Chair Yellen repeated that Dec rate hike possibility remains live.

    In the day ahead, any recovery in EUR/USD is expected to remain short-lived as persisting divergent monetary policy outlooks will continue to pressure the EUR to the downside. While the US weekly jobless claims and Fed speeches will eagerly awaited for further USD moves ahead of Friday’s NFP.

    EUR/USD Technical Levels

    The pair recovers a part of yesterday’s steep losses and edges higher with the next hurdle in sight at 1.0890/1.0900 (daily pivot/ round number). A break above the last, the prices could climb further towards 1.0947/67 (5-DMA/ Nov 4 High), from there to 1.0994 (1h 200-SMA). While to the downside the immediate support is seen at 1.0840 (Aug lows). Selling pressure will intensify below the last, dragging the pair towards 1.0820/13 (daily S1) and below that 1.0800 (psychological levels) could be exposed.
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