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EUR/USD set to test 1.1000, ignores European stocks rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The shared currency erased losses and swung back into the positive territory against its American dollar post-European open, driving EUR/USD back towards 1.10 handle.

    EUR/USD finds good support at 1.0960

    Currently, the EUR/USD pair trades 0.20% higher near fresh session highs of 1.0991, having regained hourly 50-SMA in last hours and now aims for 1.1000. The main currency pair regained lost footing and now looks to test previous highs on its way to 1.10 handle.

    EUR/USD bounced-off lows and rebounded to daily highs on the back of sudden selling wave that hit the US dollar, completely ignoring the rising demand for riskier assets such as the equities. The European stocks reversed previous losses and jumped sharply higher on oil price recovery, with the German DAX galloping +1.40%, the UK’s FTSE rising 0.40% and the pan-European benchmark, the Euro Stoxx 50 flying 1.20%.

    Meanwhile, the upcoming US economic data viz., goods trade balance, consumer confidence and S&P/CS Composite-20 HPI y/y data will provide further momentum amid a relatively light economic calendar in the week ahead.

    EUR/USD Technical Levels

    The pair extends gains and finds the immediate resistance is seen at 1.1000 region (round umber). A break beyond the last, doors will open for a test of 1.1020 (100-DMA). On the flip side, the immediate support is placed at 1.0942 (Dec 28 Low), below which 1.0913 (1h 200-SMA) could be tested. To the upside,
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