EUR/USD off lows on sharp recovery in EUR/GBP cross

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The sharp recovery in the EUR/GBP cross following BOE Carney’s dovish comments also helped the EUR/USD pair move off lows to trade around 1.0880.

    Nears hourly 200-MA

    The pair is trading just short of the hourly 200-MA located at 1.0882. BOE’s Carney squashed any little hopes of a rate hike that existed by stating now is not the time to raise rates. This triggered a wave of selling in GBP across the board, which pushed the cross higher.

    The increased demand for the EUR in the EUR/GBP cross also helped the EUR/USD pair recover to near hourly 200-MA levels.

    EUR/USD Technical Levels

    The immediate hurdles are – 1.0882 (hourly 200-MA), 1.0889 (hourly 100-MA), 1.0890 (38.2% of 1.1495-1.0517). A break higher would expose 1.0940 (61.8% of Mar-Aug rally). On the other hand, a break below 1.0859 (daily low) would open doors for a drop to 1.0816 (50-DMA).
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