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EUR/USD ignores EZ PMI, weak European stocks support EUR

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The slide in the EUR/USD pair from the daily high appears to have stalled around 1.0930 on account of the drop in the European stock markets.

    Trades below 50-DMA

    The spot has edged below the 50-DMA at 1.0931 levels amid the drop in the European stocks. The investors have turned cautious ahead of the Fed meeting, where the bank is expected to raise rates for the first time in almost a decade. Consequently, the equities failed to sustain early gains and fell into losses, thereby lending support to the funding currency EUR.

    A weaker-than-expected Eurozone manufacturing PMI received little/no attention from the markets, which remains focused on the Fed meeting outcome.

    EUR/USD Technical Levels

    A failure to get back above the 1.0931 (50-DMA), could trigger a fall to 1.0890 (38.2% of 1.1495-1.0517). A break lower would expose 1.0837 (Dec 7 low). On the other hand, a break above the daily high at 1.0959 could see the pair re-test 1.10-1.1006 (50% of 1.1495-1.0517).
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