EUR/USD reverts to 1.0880 as European stocks drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the EUR weakened post-European open, now lifting the EUR/USD pair towards session highs as the lower start in the European market supports the common currency.

    EUR/USD supported at 1.0860

    The EUR/USD pair trades modestly flat at 1.0880, recovering from session lows struck at 1.0863 in last hours. The main currency pair found renewed bids around 1.0860 region and broke through the daily pivot, attempting a minor rally towards 1.09 handle.

    Despite the losses seen in the European stocks, the EUR/USD pair is expected to remain undermined on the back of rising demand for the US currency and on weaker German industrial figures. Industrial output in Germany fell 1.1% in Sept, after reporting a revised 0.6% decline in Aug.

    Looking ahead, the main focus remains the US payrolls data as markets stay expectant on the timing of the Fed rate lift-off. Markets are expecting 180k jobs additions in Oct against a dismal 142k added in Sept. Any figure above expectations or even matching expectations will trigger a fresh USD rally and almost seal in a Dec Fed rate hike deal.

    EUR/USD Technical Levels

    The pair remains below 1.09 handle with the next hurdle in sight at 1.0921 (5-DMA) from there to 1.0958/67 (10-DMA/ Nov 4 High). While to the downside, the immediate support is seen at 1.0842/32 (Nov 4 & 5 low). Selling pressure will intensify below the last, dragging the pair towards 1.0805/00 (daily S2/ psychological levels).
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