EUR/USD off-lows, hovers around hourly 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The shared currency found support near the mid-point of 1.09 handle and retraced slightly from lows in the late-Asian trades, with the bulls offered some respite on falling Asian equities.

    EUR/USD moves away from 1.10 handle

    Currently, the EUR/USD pair loses -0.25% and trades at 1.0965, recovering from session lows struck at 1.0955 couple of hours ago. The main currency pair keeps losses as the markets dump the funding currency in favour of the US dollar, awaiting the Fed outcome due to be announcement this Wednesday.

    Millan Mulraine, deputy chief US macro strategist at TD Securities noted, "The market is fairly priced for a 25 basis point hike in the policy rate, so the key focus will be on what the Fed says about the future path for rates."

    Hence, the EUR/USD pair is expected to remain under pressure on policy divergence, as the ECB keeps its ‘ready to do more stance’ intact, despite an unusually hawkish decision at its meeting earlier this month.

    However, the downside remains cushioned amid ongoing weakness in global equities, with the sentiment on the European stocks now eyed for further momentum ahead of ECB Chief Draghi speech due later in the session ahead.

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    EUR/USD Technical Levels

    The pair keeps losses, with the immediate support seen at 1.0943 (1h 100-SMA), below which 1.0924 (Dec 10 & 11 Low) could be tested. On the flip side, the immediate resistance is seen at 1.1000 (round number). A break beyond which doors will open for a test of 1.1033 (Dec 11 High).
    For more information, read our latest forex news.

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