EUR/USD keeps the trade above 1.0800

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) -The common currency keeps the buoyant tone during the European morning, with EUR/USD navigating in the 1.0820/40 band.

    EUR/USD propped up by risk aversion

    Market participants seem to have already digested last-week’s sharp sell-off following the ECB meeting and Draghi’s dovish comments afterwards.

    However, speculations on further easing by the central bank at its meeting in March are poised to dictate the pair’s price action in the next weeks, along with the probabilities of another rate hike by the Federal Reserve.

    In the data space, German IFO indicator has come in short of expectations, although the pair has largely ignored it. Across the Atlantic, the Dallas Fed manufacturing index is only due.

    EUR/USD levels to watch

    The pair is now advancing 0.21% at 1.0819 and a break above 1.0862 (20-day sma) would target 1.0983 (100-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5).
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