EUR/USD rises to fresh highs near 1.0630, EU CPI in focus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone surrounding the EUR/USD pair weakened in last hours, now driving the major towards Tuesday’s highs reached near 1.0640 region.

    EUR/USD regains 200-SMA on 1hr sticks

    Currently, the EUR/USD pair trades -0.08% lower at 1.0626, hovering close to fresh session highs posted at 1.0632 few minutes ago. The main currency pair paused its retreat few pips ahead of 1.06 handle and resumed its recovery mode well beyond hourly 200-SMA placed at 1.0621.

    Further, the major regains lost momentum and tries hard to wipe-out losses as the bulls ignore the higher start on the European indices in anticipation of further easing from the ECB later this week. The German benchmark, the DAX gains 0.27% while the UK’s FTSE advances 0.46%.

    Moreover, the optimistic tone surrounding the EUR/USD pair could be also due to upbeat Euro zone expectations, following yesterday’s impressive manufacturing PMI results and jobs data from the Euro land. Euro zone inflation is expected to tick higher, registering a 0.3% rise y/y in Nov. In October, consumer price growth in the euro zone saw a flat 0.0%.

    Following the release of EZ CPI figures, focus will shift towards the US ADP employment report in the day ahead. Also, Fed Chair Yellen’s speech at two separate events will remain in the spotlight.

    EUR/USD Technical Levels

    The pair trades firmer 1.06 handle, with the next hurdle in sight is located at 1.0640 (Nov 27 High) and from there to 1.0664 (20-DMA). To the downside, the immediate support seen at 1.0600 (5-DMA). Selling pressure will intensify below the last, dragging the pair towards 1.0558 (Nov 30 Low).
    For more information, read our latest forex news.

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