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EUR/USD: Rally fizzles near 1.0890, recedes to 1.0860

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - A renewed bout of buying interest seen in the EUR/USD pair waned, as the European stocks resumed its 3-day rally while the greenback recovered losses and turned positive.

    EUR/USD capped below 1.0900

    The EUR/USD pair trades modestly flat at 1.0863, having tested the daily pivot last hours. The main currency pair halted its corrective rally and retreated towards hourly 20-SMA at 1.0865 levels as the bulls failed to surpass the immediate hurdle placed at the daily pivot.

    Moreover, most major European stocks erased early losses and flipped to gains, and therefore lifted the sentiment again. Thus, diminishing the safe-haven bids for the yen. The DAX recovered losses and rose 0.30% while the Euro Stoxx also gained 0.30%. However, the UK’s FTSE trades in the red ahead of the BOE Super Thursday events.

    Focus now shifts to ECB Chief Draghi’s speech scheduled later this session ahead of the US weekly jobless claims and Fed speaks.

    EUR/USD Technical Levels

    The pair recovers a part of yesterday’s steep losses and edges higher with the next hurdle in sight at 1.0890/1.0900 (daily pivot/ round number). A break above the last, the prices could climb further towards 1.0947/67 (5-DMA/ Nov 4 High), from there to 1.0994 (1h 200-SMA). While to the downside the immediate support is seen at 1.0840 (Aug lows). Selling pressure will intensify below the last, dragging the pair towards 1.0820/13 (daily S1) and below that 1.0800 (psychological levels) could be exposed.
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