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EUR/USD halts 4-day slide, but remains below 1.1150

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The EUR bulls were offered some support so far this Thursday, with EUR/USD attempting a minor-recovery on the 1.11 handle amid positive Asian equities and a broadly lower greenback.

    EUR/USD capped by hourly 50-SMA at 1.1146

    Currently, EUR/USD trades 0.08% higher at 1.1136, retracing from fresh session highs printed at 1.1146 post-China open. The main currency pair’s recovery post-Fed minutes ran through fresh offers at hourly 50-SMA, and the prices are now consolidating a few pips below the last over the last hours.

    The major remains supported this session, despite the extension of the rally seen in the Asian equities, on the back of broad based US dollar weakness following the dovish Fed minutes released last US session. The USD index now drops -0.12% to 96.76 levels.

    The Fed minutes revealed that the Fed officials remained concerned over the recent global market turbulence, and indicated that Fed could slow its pace of interest rates increases this year. While Fed’s Bullard’s comments that the Fed could revisit negative rates issues if required, further added to the negative sentiment around the USD.

    Looking ahead, markets await the release of Euro zone trade balance and ECB monetary policy accounts later today for further incentives on the pair. While the US weekly claims and Philly Fed manufacturing index will also remain in focus.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1146 (1h 50-SMA/ daily high). A break beyond the last, doors will open for a test of 1.1215 (1h 200-SMA/ 10-DMA). On the flip side, the immediate support is placed at 1.1100 (round number) below which at 1.1088/ 84 (daily S1/ Feb 8 Low) could be tested.
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