EUR/USD retreats further, tests 1.09

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The common currency is now trading on a weaker tone against the dollar, taking EUR/USD to challenge the critical support at 1.0900.

    EUR/USD softer ahead of Yellen

    The bid tone around the US dollar remains firm today, prompting spot to trade closer to recent lows following the FOMC meeting, just below the 1.0900 handle. The greenback picked up further pace after the ADP report was slightly better than forecasts during October (182K) and the US trade deficit shrunk more than expected during September to $41.7 billion.

    Next on tap, the ISM Non-Manufacturing and Markit’s Services PMI are due, ahead of the testimony by Fed Chief J.Yellen and speeches by Dudley and Fischer.

    EUR/USD levels to watch

    As of writing the pair is retreating 0.53% at 1.0904 with the immediate support at 1.0897 (low post-FOMC Oct.28) followed by 1.0847 (low Aug.5) and finally 1.0808 (low Jul.20). On the other hand, a break above 1.1107 (7-month uptrend prev. support now resistance) would target 1.1125 (61.8% Fibo of 1.1496-1.0897) en route to 1.1145 (100-day sma).
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