EUR/USD finds support around 1.0850

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    After a brief test of fresh lows around 1.0850, EUR/USD remains in a narrow range with the recovery capped around 1.0885/80 for the time being.

    EUR/USD focus on US ISM, risk

    The bearish tone around the common currency remains intact during the first half of the week, accentuated since yesterday after advanced EMU’s inflation figures have come in lower than expected for the current month.

    Market expectations of some sort of ECB action at next week’s meeting have been picking up pace since then, driving the euro lower and thus leaving the door open for further downside.

    In the meantime, the greenback will take centre stage later in the NA session in light of the ISM Manufacturing in the US economy, expected at 48.5 for the month of February.

    EUR/USD levels to watch

    The pair is now losing 0.04% at 1.0874 and a break below 1.0809 (low Jan.29) would target 1.0777 (low Jan.21) en route to 1.0709 (2016 low Jan.5). On the other hand, the next up barrier aligns at 1.0970 (55-day sma) ahead of 1.1047 (200-day sma) and then 1.1123 (38.2% Fibo of December up-move).
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