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EUR/USD heavy, breaches 50-DMA support near 1.0980

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The offered tone around the EUR picked-up pace post-China open, now sending EUR/USD further below 50-Dma support located at 1.0982.

    EUR/USD fails once again above 1.1000

    Currently, EUR/USD drops -0.33% to fresh session lows of 1.0973, having met fresh supply at hourly 20-SMA (1.1012) in the opening trades. The main currency pair reversed a tepid-bounce and resumed its recent bearish streak as the US dollar regained momentum and jumped higher against its major peers. The USD index rises 0.29% to 97.43, recovering from 96.89 lows reached yesterday.

    EUR/USD fails to benefit from the market turmoil and risk-off moods and extends weakness as monetary policy divergence takes centre-stage ahead of the ECB meeting tomorrow, with markets expecting to roll out further easing measures in wake of the recent run of poor Euro zone economic data, particularly inflation figures.

    Looking ahead, the EUR calendar remains absolutely data-empty, and hence, the risk-off/on sentiment will continue to drive the major, while focus remains on Thursday’s ECB policy decision.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1000 (psychological levels). A break beyond the last, doors will open for a test of 1.1042/44 (daily R2/ 200-DMA). On the flip side, the immediate support is placed at 1.0948/41 (10-DMA/ 1h 200-SMA) below which at 1.0911 (100-DMA) could be tested.
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