EUR/USD regains momentum, challenges Monday’s high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR bulls appear to have taken a breather in the Asian trades, with EUR/USD now consolidating the recent bullish run to 200-DMA at 1.1045 levels.

    EUR/USD extends beyond 1.1000

    Currently, EUR/USD trades 0.08% at fresh session highs of 1.1027, finally breaking through its 12-pips narrow range. The main currency pair is seen consolidating the 75-pips upward rally witnessed in response to the dismal labour market conditions report from the US, and manages to resist above 1.10 handle.

    The EUR/USD finds support from the risk-off market profile extended into Asia, with heavy sell-off seen in the Asian equities as cautious tone prevails ahead of the Chinese trade balance data. The Japanese Nikkei drops -1.65%, Australia’s ASX 200 is down -0.45%, while the Chinese benchmark, Shanghai Composite index slides -1.85%.

    Looking ahead, the EUR calendar offers a slew of second-liner data today, including the German industrial and Euro zone revised GDP figures. Besides, the Euro zone ECOFIN meetings will go on all through the European hours. While nothing relevant is due for release from the US docket.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1043/45 (daily R1/ 20 & 200-DMA). A break beyond the last, doors will open for a test of 1.1071/80 (Feb 26 High/ daily R2). On the flip side, the immediate support is placed at 1.1000 (psychological levels) below which at 1.0954/43 (10-DMA/ 1h 200-SMA) could be tested.
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