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EUR/USD regains 1.09 and beyond as risk-off intensifies

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/USD recovery from session lows gathered momentum over the last hours, with the major reaching fresh daily highs ahead of 1.0900.

    EUR/USD bounces-off hourly 100-SMA again

    Currently, the EUR/USD pair trades 0.43% at fresh session highs of 1.0917. The extension of the losses in the European stocks combined with oil prices breaching $ 30 mark, refuelled concerns over the health of the global economy and worsened the market sentiment.

    Therefore, investors resort to low-yielding/safer currencies such as the euro, driving EUR/USD higher. Germany’s DAX drops -0.88%, the UK’s FTSE slides -0.84%, while the pan-European benchmark, the Euro Stoxx 50 declines -1.41%.

    Meanwhile, the major is expected to remain supported, tracking the sentiment on the global equities and oil markets. While the second-liner trade balance figures due alter shortly is expected to have virtually no impact on the prices. Next in focus remains a host of US economic releases for further cues on the major.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0960/69 (200-DMA/ Jan 11 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 1.0844/ 37 (1h 200-SMA/ 50-DMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested.
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