EUR/USD fails to hold above 1.0900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Having bottomed near 1.0880 region in early Asia, the EUR/USD pair caught fresh bid-wave over the last hours and retested 1.09 handle amid risk-off moods across the financial markets.

    EUR/USD bounces-off strong support at 1.0882

    Currently, the EUR/USD pair trades modestly flat at 1.0891, having tested session highs at 1.0904. The main currency pair erased most losses after the poor Chinese GDP release brought risk-aversion back into markets, with the funding currency in the EUR finding some support from mixed Asian equities and lower
    commodities’ prices. Japan’s Nikkei is down -0.72%, while the Shanghai Composite index rises 0.33%.

    However, the upside in the EUR/USD pair remains short-lived as the upcoming economic news from the Euro zone and Germany are likely to disappoint markets and hence, weigh on the common currency. Later today, we have plenty of risk events in the EUR calendar viz., the German inflation and ZEW figures, Euro zone’s current account and final CPI data. While the main focus is likely to remain on the US inflation report as well as on the ECB meeting due later this week.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0940/52 (Jan 18 High/ 100-DMA). A break beyond the last, doors will open for a test of 1.0984/1.1000 (Jan 15 High/ round number). On the flip side, the immediate support is placed at 1.0882 (1h 100-SMA/ 20-DMA), below which 1.0852 (50-DMA/ Jan 15 Low) could be tested.
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