EUR/USD: recovery stalls at 38.2% Fib of post-ECB rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD’s recovery from the NY session low of 1.0803 stalled at 1.0852 (1.0517-1.1060) levels in Asia.

    Focus on European stocks

    Apart from the overall appetite for the US dollars, the traders would also keep an eye on the European stocks. The odds of a correction are high following the weak closing on the Wall Street. The bid tone on the funding currencies like EUR could improve if the equities turn risk averse.

    Later in the day, the US markit services PMI and the regional manufacturing index could influence the pair. Meanwhile, the Fed’s Lacker could throw a light on the path of policy tightening in the US.

    EUR/USD Technical Levels

    At 1.0848, the immediate resistance is seen at 1.0852 (1.0517-1.1060), above which the gains could be extended to 1.0890 (38.2% of 1.1495-1.0517). A break below 1.0823 (daily low) would expose 1.0803 (previous day’s low), under which the pair could drop to 1.0788 (50% of 1.0517-1.1060).
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