EUR/USD re-takes 1.1150 ahead of ECB accounts

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The EUR/USD pair found fresh bids near 1.1125 region and now crawls higher towards daily highs, mainly backed by broad based US dollar weakness.

    EUR/USD on its way to 5-DMA at 1.1154?

    Currently, EUR/USD trades 0.13% higher at 1.1141, heading for a retest of daily highs reached at 1.1150 in late-Asia. The main currency pair was caught by a fresh bid wave after the US dollar fell further into the red against its major peers as the European traders continue to assess the dovish Fed minutes heading into the ECB Jan meeting accounts release.

    Further, the bulls continue its fight to take-out 1.1150 barrier, as the renewed optimism in the European indices weigh on the safe-haven currency EUR. Germany’s DAX erased losses and now rises 0.40%, while the pan-European benchmark, the Euro Stoxx also regains momentum and advances 0.60%.

    Meanwhile, the EUR/USD pair also finds some support from the upbeat Euro zone trade data, which showed that the region’s trade surplus shrank less than expectations. The current account surplus declined to EUR25.5 billion in Dec, from an upwardly revised EUR26.9 billion reported in November and beating consensus of a steep decline to a EUR22.3 billion surplus. Attention now remains on the ECB accounts and the US macro releases for fresh direction.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1150/54 (daily high/ 5-DMA). A break beyond the last, doors will open for a test of 1.1214 (1h 200-SMA/ 10-DMA). On the flip side, the immediate support is placed at 1.1100 (round number) below which at 1.1088/ 84 (daily S1/ Feb 8 Low) could be tested.
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