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EUR/USD extends corrective slide towards 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Having peaked near 50-DMA at 1.0975 in last US session, the EUR/USD pair continues to drift lower in Asia so far, correcting heavy gains booked yesterday.

    EUR/USD drops as USD recovers

    Currently, EUR/USD trades -0.14% lower at fresh session lows of 1.0941, looking to test 100-DMA support at 1.0922. The offered tone surrounding the EUR/USD pair gathered pace over the last hour as the US dollar halted its downslide and recovered ground somewhat against its six major peers.

    On Thursday, the recovery in EUR/USD from 1.0825 region picked-up steam as the US dollar witnessed a massive sell-off after the release of disappointing US dataflow. The ISM non-manufacturing index bettered expectations, however, its employment sub-index dropped. While the factory orders and unemployment claims missed estimates and raised concerns over the recent signs of strength seen in the US economic recovery.

    Looking ahead, amid a data-dry EUR calendar, all eyes remain on the much awaited US payrolls data for next direction on the major. The US non-farm payrolls data is expected to show 195k job additions in the US economy last month, against 151k registered in Dec.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.0975 (50-DMA). A break beyond the last, doors will open for a test of 1.1000 (psychological mark). On the flip side, the immediate support is placed at 1.0925/22 (1h 20-SMA/ 100-DMA) below which at 1.0900/1.0887 (round figure/ 1h 100-SMA) could be tested.
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