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EUR/USD limited by 1.0850

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The euro is rising against the US dollar on Monday after posting on Friday the lowest daily close in two weeks. The recovery of EUR/USD found resistance below 1.0850 and then pulled back. Currently, it trades at 1.0825/30, up 0.30% for the day.

    EUR/USD between risk aversion and the ECB

    Last week Mario Draghi, president of the European Central Bank said that it would reexamine monetary policy at the March meeting triggering speculations about further stimulus. The euro weakened after the meeting and it dropped below 1.0800 on Friday. Today EUR/USD managed to rise above and recovered some lost ground.

    The pair today peaked at 1.0845 and from there it pulled back. So far the correction found support above 1.0820.

    EUR/USD is rising today and still remains above an important support area located around 1.0800, but the bias still appears to favor the US dollar as price remains below the 20-day moving average that stands at 1.0875.

    Stocks in the US are falling while in Europe finished lower. The FTSE lost 0.40% and the DAX declined 0.30%. In Wall Street, the Dow Jones was falling 0.48% and the Nasdaq was losing 0.46%. Like it has been happening during the fourth quarter, risk aversion today is favoring the demand for the euro in the market.
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