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EUR/USD offered tone weakens around 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The EUR/USD pair recovered from 100-DMA support at 1.0957 levels on the back of the rise in the EUR/GBP cross and heightened risk-off in the equities.

    Back above 50-DMA

    The pair is back above the 50-DMA level of 1.0970. The common currency was dragged lower by the sharp sell-off in the GBP/USD pair on Brexit fears. However, the risk-off in the European equities has worsened, with Stoxx 50 now down more than 2% on the day. Consequently, the EUR found bids around its 100-DMA level.

    The Brexit driven rise in EUR/GBP also appears to have supported by the recovery in EUR/USD pair. The focus now is on the US opening bell and US data – preliminary services CPI and new home sales.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.0990 (previous day’s low), above the gains could be extended to 1.1048 (200-DMA + 38.2% of 1.0517-1.1376). On the other hand, a breakdown of immediate support at 1.0957 (100-DMA) could see the spot test 1.09 handle.
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