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EUR/USD remains capped below 1.1200 in early Europe

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The EUR/USD pair is seen consolidating the previous rally below 1.12 handle, as markets remain unnerved ahead of Fed Chair Yellen’s speech due later in the NY session.

    EUR/USD: Yellen in spotlight

    Currently, EUR/USD trades modestly flat at 1.1189, hovering close to fresh session lows reached at 1.1185 some minutes ago. The main currency pair keeps its corrective mode intact as we progress towards early Europe largely on the back of a minor pullback in the US dollar against its major peers, following mixed US dataflow-led slide. The US personal spending showed slower growth in Feb, while the pending home sales jumped to 7-month high last month.

    More so, the USD recovery gains is seen gaining traction over the last hour, as markets prefer to hold the US currency ahead of Fed Yellen’s speech scheduled in the NY session, especially after a number of hawkish comments from Fed officials delivered last week.

    On the data front, there is nothing of relevance from the Euroland and hence, focus shifts towards the US consumer confidence data that may provide fresh cues on the US economic recovery and eventually on the Fed interest rates outlook.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1219/20 (Mar 28 High/ 1h 200-SMA). A break beyond the last, doors will open for a test of 1.1250/56 (psychological levels/ daily R2). On the flip side, the immediate support is placed at 1.1177/68 (5 & 20-DMA) below which at 1.1150 (round number) could be tested.
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