EUR/USD side-lined below 1.1100, awaits ECB Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet - The EUR/USD pair keeps losses and hovers in flat-lining below 1.11 handle heading into early Europe, as markets await fresh impetus from the ECB Chief Draghi’s speech due later this session.

    EUR/USD struggling to extend beyond 1.1095, hourly 10-SMA

    Currently, EUR/USD trades -0.16% lower at 1.1087, oscillating in a 20-pips tight range since mid-Asia. The main currency pair surrenders nearly 60 pips from multi-week peaks and consolidates below 1.11 barrier amid a broadly higher US dollar and optimistic sentiment on the Asian equities, given the overnight rebound in the commodities’ prices, especially oil.

    However, the ongoing correction in the major looks to fade soon as the US dollar is likely to remain under pressure ahead of Friday’s US payrolls report, with markets already losing faith in the Fed prospects on the future rate hikes. In the meantime, markets look forward to ECB Draghi’s speech due at European open and the US unemployment claims as well as factory orders data for further cues on the USD moves.

    Besides, oil prices action and the sentiment on the European stocks will continue to have some bearing on the major.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.1145/50 (Feb 3 High/ round number). A break beyond the last, doors will open for a test of 1.1192/1.1200 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1036/27 (1h 20-SMA/ 200-DMA) below which 1.0987/77 (Jan 15 & 20 High) could be tested.
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