EUR/USD pushes higher, eyes on 1.0880

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The shared currency is now extending its recovery vs. the greenback, sending EUR/USD to test daily peaks around 1.0870.

    EUR/USD sustained by risk-off trade

    Another steep drop in the Chinese equity markets (Shanghai -6.3%) plus a renewed weakness around crude oil prices have sparked a wave of risk aversion in the global markets, giving extra support to EUR and sending spot higher ahead of the opening bell in London.

    There will be no scheduled releases in Euroland today, although the broad risk trends plus some key data in the US calendar should keep investors entertained, all ahead of tomorrow’s FOMC interest rate decision.

    EUR/USD levels to watch

    The pair is now advancing 0.14% at 1.0870 and a break above 1.0980 (100-day sma) would target 1.1054 (200-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5).
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