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EUR/USD fails to extend bounce after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/USD steadied just above the 1.1000 level after a brief drop below the psychological level where the pair posted fresh 3-week lows on the back of disappointing German IFO data.

    EUR/USD bottomed out at 1.0989 during the European session but found support and recovered some ground. However, the bounce was capped by the 1.1020 zone following a string of mixed US data, confining the pair to a phase of consolidation. At time of writing, EUR/USD is trading at 1.1005, still 0.21% below its opening price.

    On the data front, US consumer confidence fell to 92.2 in February, below the 97.0 expected, while Richmond Fed manufacturing index dropped to -4 in the same month. On the other hand, existing home sales rose 0.4% in January, hitting its second highest rate since early 2007 and beating expectations of a 2.9% drop.

    EUR/USD levels to watch

    As for technical levels, immediate supports are seen at 1.0960 (100-day SMA) and 1.0903/00 (Feb 3 low/psychological level) ahead of 1.0882 (Feb 2 low). On the other hand, resistances could be found at 1.1050 (200-day SMA), 1.1138 (Feb 19 high) and 1.1178 (Feb 17 high).
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