EUR/USD extending the recovery from 200-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The main currency pair holds onto the key 200-DMA support placed at 1.1025 and now attempts a minor-recovery few pips shy of 1.1050 levels.

    EUR/USD rises as USD weakens

    Currently, EUR/USD trades 0.14% higher at 1.1046, testing fresh session highs reached at 1.1049. The main currency pair caught a fresh bid-wave last minutes after the Asian stocks fell deeper in the red zone and accelerated the risk-off trades across the financial markets, boosting the demand for the safe/ low-yielding currency EUR. Japan’s Nikkei slips -0.50%, Australia’s ASX is down -0.46%, while the Shanghai Composite loses -1.20%.

    The renewed bout of risk-aversion was triggered by fresh selling seen in the oil prices, which rattled investors’ confidence once again. Both crude benchmarks are down over -1.50% so far this session.

    Looking ahead, markets await a set of German economic data, with the Ifo surveys expected to remain in focus ahead of the US consumer confidence and housing data due later in the NY session.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1083/87 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open for a test of 1.1100/06 (round number/ 1h 100-SMA). On the flip side, the immediate support is placed at 1.1025/21 (200-DMA/ daily low) below which at 1.0982 (50-DMA) could be tested.
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