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EUR/USD ignores downward revision of German GDP forecasts

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/USD hardly batted an eye and continues to trade around near daily highs as investors ignored the downward revision of the German GDP forecast by nation’s economic ministry.

    Focus remains on stocks

    The stock markets across Europe dropped on weak quarterly earnings and due to the losses in oil. Consequently, the EUR remains bid. Moreover, the downward revision of the German GDP forecasts could have only added to the bid tone around the EUR as the news could further push equities lower.

    The currency pair currently trades around 1.0875. The pair remains at the mercy of the action in the equities ahead of the FOMC rate decision due later today.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.0890 (38.2% of 1.1495-1.0517). A break higher would expose 1.0940 (61.8% of Mar-Aug high), which if taken out may see the pair rally to 1.10 levels. On the other hand, a break below 1.0841 (hourly 100-MA) could see the pair re-test 1.08 handle, which if taken out shall open doors for a drop to 1.0777 (Jan 21 low).
    For more information, read our latest forex news.
     

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