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EUR/USD recovery from 20-DMA stalls near 1.0950

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The shared currency stalled its recovered against the US dollar near 1.0950 levels in the Asian trades, sending EUR/USD closer towards 1.09 handle.

    EUR/USD bounces-off lows near 20-DMA at 1.0886

    The bulls were offered some respite near the 20-DMA support, lifting EUR/USD back near 1.0950 levels, only to meet fresh supply at the last and drift slightly lower to 1.0920, where it now wavers.

    The main currency pair came under renewed selling pressure this session after the greenback rallied across the board, mainly in response to the massive spike seen in the USD/JPY pair after the BOJ adopted negative interest rate policy in tandem with the QQE at its policy meeting today. USD/JPY jumped almost 300-pips on the BOJ easing decision.

    Looking ahead, a slew of fundamentals from both continents are likely to dictate further moves on the pair. During the European session, the German retail sales and Euro zone flash CPI will be closely eyed. While the US advance GDP and consumer sentiment will grab the eye balls in the NY session.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.948/69 (Jan 28 & 21 High). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0886/74 (20-DMA/ 1h 200-SMA), below which 1.0850/49 (psychological levels/ Jan 27 Low) could be tested.
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