EUR/USD re-takes 1.0900 amid European stocks rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The upside in the EUR/USD remains contained by 1.09 barrier, with the prices now consolidating below the last amid higher European stocks.

    EUR/USD jumps-off hourly 20-SMA

    Currently, the EUR/USD pair trades 0.30% higher at 1.0895, finding good support at hourly 20-SMA located at 1.0873. The major once again reverts to 1.09 handle, shrugging-off mild downward pressure witnessed earlier amid the rebound seen in the European equities, which reduced the demand for the funding currency in the euro. Germany’s DAX jumps +1.19%, while the UK’s FTSE gains 0.46% and the pan-European benchmark, the Euro Stoxx 50 rises 0.40%.

    However, tumbling oil prices and higher EUR/GBP keep the downside limited in the EUR/USD pair. While a weaker US dollar on the back absolutely non-existent demand for risk currencies, also keeps the sentiment around EUR/USD buoyed.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0909 (5-DMA) A break beyond the last, doors will open for a test of 1.0970/72 (Jan 11 High/ 100-DMA). On the flip side, the immediate support is placed at 1.0851/41 (1h 100-SMA/ daily low), below which 1.0825 (50-DMA) could be tested.
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