EUR/USD: Retreats to 10-DMA as European stocks open elevated

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 25, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - A renewed rally in EUR/USD lost steam just few pips shy of 1.07 barrier after the European markets opened upbeat, although Middle-East geo-political concerns still remain in focus amid a data-quiet EUR calendar.

    EUR/USD hovering around daily R1

    Currently, the EUR/USD pair trades 0.25% higher at 1.0669, easing-off fresh three-day highs recorded at 1.0689 ahead of Europe open. The main currency pair trims gains and slips back below hourly 200-SMA now placed at 1.0679, as the European stocks shrugged-off weakness seen in Asian indices and trades higher on turnaround in risk-conditions in Europe.

    The German benchmark, the DAX gains 0.31% while the UK’s FTSE rises 0.70% and the pan-European benchmark, Euro Stoxx 600 advances 0.20%.

    Meanwhile, the US dollar is retracing a part of losses incurred since yesterday against its major competitors amid persisting weakness in the US treasury yields. Looking ahead, attention now shifts towards the US macro releases, including the durable goods and Core PCE index, in absence of economic data during the European session.

    EUR/USD Technical Levels

    The pair trades firmly above 1.06 handle, with the immediate support seen at 1.0642 (1h 50-SMA). Selling pressure will intensify below the last, dragging the pair towards 1.0600/1.0593 (round number/ Nov 23 Low). While to the upside the next hurdle in sight is located at 1.0689 (daily high) and from there to 1.0700 (round number).
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