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EUR/USD offered at 1.0875, eyes Tuesday’s low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The bid tone surrounding the USD is seen gathering pace, sending EUR/USD to fresh session lows near the mid-point of 1.08 handle.

    EUR/USD trades below all major DMAs

    Currently, EUR/USD trades -0.10% lower at fresh session lows of 1.0857, facing stiff resistance at 1.0875 levels. The main currency pair finally broke the overnight consolidation mode to the downside and now drifts towards Tuesday’s low struck at 1.0832 as the greenback halted its correction and picked-up strength versus its six major peers. The USD index rises 0.14 to 98.34, recovering from 98.17 lows.

    The single currency remains in weekly lows against its American counterpart as the recent positive US economic data continues to point towards strengthening US economic prospects. Contrarily, the Euro zone’s recovery remains fragile, with the inflation and manufacturing outlook still remaining weak.

    Further, the extended risk-on rally in the global equities also weighs on the low-yielding/ safe-haven euro. Meanwhile, the major awaits the final services PMI readings from across the Euro area economies ahead of the US jobless claims, ISM services PMI and factory orders data that will be released in the NY session.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.0875/81 (daily high/ 5-DMA). A break beyond the last, doors will open for a test of 1.0925 (100-DMA). On the flip side, the immediate support is placed at 1.0832/23 (Mar 1 & 2 Low) below which at 1.0812/09 (Feb 1 & Jan 29 Low) could be tested.
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