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EUR/USD extends the corrective slide to 1.0875

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The upside in the EUR/USD pair lost traction once again lost traction near 1.0950 region and the price fell sharply pre-European open, notwithstanding 1.09 handle.

    EUR/USD shrugs off upbeat German data

    Currently, the EUR/USD pair trades -0.51% lower at 1.0892, quickly recovering from fresh session lows struck at 1.0883 last minutes. The main currency pair ran through fresh offers and witnessed renewed sell-off in early trades after higher European indices futures reinforced risk-on trades back into markets, benefiting risk-currencies such as the US dollar. The USD index now advances 0.51% to 98.32.

    Moreover, markets prefer to hold the US currency ahead of the crucial US payrolls data, with markets expecting a stronger print to confirm a Dec Fed rate rise. Further, the EUR/USD pair drops on correction after rising 4 big figures on Thursday, following less aggressive stimulus measures from ECB.

    Meanwhile, markets ignored upbeat German factory orders data as the major remains influenced by the broader market sentiment ahead of European open and the key US jobs data.

    EUR/USD Technical Levels

    The pair drops below 1.09 handle, with the immediate support seen at 1.0850/42 (round number/ Nov 4 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0792 (1h 20-SMA). To the top side, the next hurdle in sight is located at 1.0930 (50-DMA) and from there to 1.0956 (daily high).
    For more information, read our latest forex news.
     

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