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EUR/USD fades a spike to 1.0775, back at 1.0750

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/USD pair pares gains and retreats towards familiar range near 1.0745/50 region, as the greenback regains lost footing across the board.

    EUR/USD: Risk-off at full steam


    Currently, the EUR/USD pair trades almost unchanged at 1.0751, receding from session tops reached at 1.0773 in early Asia. The main currency pair halted its recovery mode and trimmed gains, and now reverts to the mid-point of 1.07 handle.

    The US dollar catches a fresh bid, despite the persisting risk-off moods triggered by the Chinese yuan devaluation and renewed selling in major Asian stocks. Japan’s Nikkei is down -1.54% whilst the Australian S&P/ASX slides -1.39%.

    Meanwhile, in absence of first-tier data in the European session ahead, the EUR traders will closely watch the final services PMI reports from the Euro area economies. Moving on to the NA session, the ADP jobs report, trade data and ISM services PMI data will remain in focus. However, the FOMC minutes is likely to hog the limelight today.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0810/12 (50-DMA/ 1h 50-SMA). A break beyond the last, doors will open for a test of 1.0860/69 (1h 100-SMA/ 10-DMA). On the flip side, the immediate support is placed at 1.0709/00 (Jan 5 Low/ round number), below which 1.0650 (pre-ECB levels) could be tested.
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