EUR/USD extends corrective slide, surrenders 1.09

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Having peaked near 1.0980 region last Friday, the EUR/USD pair extends its corrective slide into the mid-Asian trades, despite a generalized risk-off sentiment prevailing in markets.

    EUR/USD meets fresh supply near 1.0930

    Currently, the EUR/USD pair trades -0.19% at 1.0896, hovering close to fresh session lows of 1.0893. The main currency pair reversed more than half of the previous rally and fell in today’s trade as markets book profits on the EUR longs after the major failed near 1.10 handle, with the main focus now on a fresh batch of US and Euro zone economic releases and the upcoming ECB meeting this week. The ECB is widely expected to keep the policy setting unchanged this month amidst persisting global market turmoil.

    The EUR/USD pair remained largely indifferent to the deteriorating risk-sentiment in Asia and failed to benefit from its funding currency status as oil prices continue to slide. Looking ahead, the US markets will be closed this Monday due to the celebration of Martin Luther King day, with markets now eyeing the CPI, housing and manufacturing numbers to set direction on further USD moves.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0949/55 (daily R3/ 100-DMA). A break beyond the last, doors will open for a test of 1.0984/1.1000 (Jan 15 High/ round number). On the flip side, the immediate support is placed at 1.0874 (1h 100-SMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested.
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