EUR/USD remains weak as European equities rise

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Common currency maintains the weak tone amid gains in equities, keeping the EUR/USD pair just a shy away from the daily low of 1.1256 levels.

    Trades around 1.1270

    The spot currently hovers around 1.1270, with US dollar attempting a recovery following Fed-driven sell-off in the last two days. The bearish pressure also comes from a 0.60% rise seen in the pan-European Euro Stoxx 50 index. Risk-on in equities is keeping EUR and other funding currencies on the back foot.

    The pair remains at the mercy of the overall demand for the US dollars. Action in the US stock markets may also influence the exchange rate.

    EUR/USD Technical Levels

    The immediate hurdle is seen at 1.1293 (23.6% of May 2014 high-Mar 2015 low), above which the pair could revisit 1.1342 (previous day’s high) and 1.1376 (Feb 11 high). On the other hand, a breakdown of expose confluence of support at 1.1257 (61.8% of 1.1714-1.0517) and 1.1253 (100% Fibo of 1.0517-1.1060-1.0711) would open doors for a slide to 1.12 handle.
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