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EUR/USD: post-FOMC recovery stalls near 1.0940

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR bulls are seen fighting hard to regain lost footing in the late-Asian trades, with EUR/USD keeping the recovery mode intact nearly hourly 10-SMA.

    EUR/USD supported at 1.0900

    The EUR/USD pair trades almost unchanged at 1.0926, oscillating in a 30-pips range. The main currency pair continues its struggle on the 1.09 handle and manages to recoup a small portion of heavy losses booked yesterday, with the bulls aiming to extend the correction into the European session.

    On Wednesday, the major plummeted over 170 pips to more-than two month lows in a knee-jerk reaction to the hawkish FOMC statement, which left doors open for a Dec rate rise and also read more optimistic on the domestic economy.

    The Fed also removed the phrase from Sept statement, which cited external headwinds to the US economic prospects while reiterating; they will continue to monitor the incoming economic data.

    Looking ahead, the major will continue to track the broader market sentiment ahead of the German CPI release and the crucial first estimate of the US Q3 GDP lined up for release later today.

    EUR/USD Technical Levels

    The pair bounced-off 1.09 handle and heads lower towards the immediate resistance seen at 1.0970 (daily pivot), beyond which 1.0994/1.1000 (5-DMA/ round number) would be tested. A break above the last, 1.1022 (1h 50-SMA) would come into the picture. While to the downside, the next support is located at 1.09/1.0897 (psychological levels/ Oct 28 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0844/40 (daily S1/ Aug lows) and below that 1.0800 (round number) could be exposed.
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