EUR/USD riding greenback's weakness; eyes on ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/USD is better bid on recent sticks, breaking through the 20 sma on the hourly chart at a1.0977 and onto the 1.10 handle, marking a high of 1.1024 so far.

    EUR/USD has been supported at the 200 sma on the hourly as the greenback continues to weaken across the board with the DXY now down 0.3% for the session while oil makes a comeback and continues to dominate the markets. The better look in oil comes as Genscape data showed a smaller than expected build in cushing stocks.

    Meanwhile, looking ahead, the ECB comes this week and will dominate trade leading up to the event while we also keep an ear to the ground for Fed speakers. Casting minds back to Dec, we were disappointing by the lack of action again from the ECB and funded spurred big demand for the single currency and markets will be looking for a similar possibility on another policy disappointment.

    EUR/USD levels

    Technically, as mentioned, supported by the 200 sma on the hourly sticks at 1.0942 with an immediate target of the 200 dma at 1.1045 ahead of 1.1069 and the 20 dma. The pivot is 1.0983 ahead of S1 at 1.0922 and S2 at 1.0842 guarding 1.0781. The major is better offered while below the Feb highs and 10 month trend line above 1.1350 with a key target as 1.0800 in the medium term.
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