EUR/USD off highs, back near 1.0810

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The resurgence of the risk aversion has helped EUR/USD to regain ground lost in recent sessions and climb to daily tops near 1.0820.

    EUR/USD firmer ahead of EMU data

    The risk-off trade has kicked in again during the Asian trading hours following another abrupt drop in the Chinese equities, with the benchmark index dropping 7% and thus triggering the circuit breaker just 30 minutes after the opening bell.

    In the meantime, spot has regained the 1.08 handle and is advancing for the second session in a row ahead of a busy day in Euroland, where EMU’s Consumer Confidence, Economic Sentiment, Retail Sales and the ECB Meeting Accounts are all due later. Across the pond, the weekly report on the US labour market is only due today.

    EUR/USD levels to consider

    At the moment the pair is up 0.26% at 1.0815 with the next resistance at 1.0860 (61.8% Fibo of 1.0538-1.1059) ahead of 1.1045 (200-day sma) and the 1.1146 (5-month downtrend). On the other hand, a breach of 1.0700 (psychological level) would expose 1.0538 (low Dec.3) and finally 1.0456 (2015 low Mar.16).
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