EUR/USD launches attack towards 1.1000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair finally took out Tuesday’s high and raced higher towards 1.10 handle, as the greenback took a beating across the board amid global equities and commodities sell-off.

    EUR/USD extending beyond daily R1 at 1.0976

    Currently, the EUR/USD pair rises 0.24% to 1.0989, and trades within striking distance of 1.10 barrier. The main currency pair picked-up significant strength in the last hours and jumped higher on the back of renewed weakness seen the greenback against its major competitors, as markets sold-off riskier currencies such as the USD in wake of falling global markets and steep decline in the commodities’ prices, especially oil.

    Moreover, the European stocks are accelerating further to the downside, and thus, boost the safe-haven bids for the common currency. The German benchmark, the DAX is down -0.50% whilst the Euro Stoxx 50 drops -0.71% and the French CAC losing -0.72% so far. The UK markets are closed in observance of Boxing Day holiday.

    Amid lack of economic news and thin trades, the focus will remain on the oil price action and the sentiment on the global equities in the session ahead.

    EUR/USD Technical Levels

    The pair extends higher and finds the immediate resistance is seen at 1.1000 region (round umber). A break beyond the last, doors will open for a test of 1.1021 (100-DMA). On the flip side, the immediate support at 1.0942 (daily low), below which 1.0914 (1h 200-SMA) could be tested.
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