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EUR/USD extends recovery towards hourly 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/USD’s recovery from near 1.08 handle gains further traction in mid-Asia, with the bulls jumping-off hourly 20-SMA support near 1.0830 region.

    EUR/USD bounces on increased safe-haven appeal

    Currently, the EUR/USD pair trades 0.20% higher at fresh session highs of 1.0857, now on its way to test the hourly 50-SMA located at 1.0865. The main currency pair received fresh boost from the re-emergence of risk-off trade in markets after poor China trade data spooked investors’ confidence. Hence, markets sold-off risky assets and favoured safe-bets such as the euro.

    Asian equities snapped the previous rebound and dived this Tuesday on the back of tumbling Chinese exports, which added to the ongoing rout in the commodity prices. China stocks are heavily in the red, with China A50 index down -1.30% while Shanghai composite loses -1.43%. Moreover, the US dollar halted its recent bullish run and fell into losses against its major peers, aiding the recovery in EURUSD.

    On the data-front, today’s macro calendar offers Eurozone revised GDP and the US JOLTS job openings data, which will fill in an otherwise light macro calendar.

    EUR/USD Technical Levels

    The pair trade firmer above 1.08 handle, with the next hurdle in sight is located at 1.0865 (hourly 50-SMA) and from there to 1.0880 (5-DMA). To the downside, the immediate support is seen at 1.0800/ 1.0796 (round number/ Dec 7 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0772 (1h 100-SMA).
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