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EUR/USD side-lined near 1.0900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - EUR/USD languishes near session lows and remains capped by 1.09 handle, as the Asian stocks attempt recovery, despite the ongoing weakness in oil prices.

    EUR/USD: Bears take a breather

    Currently, the EUR/USD pair trades -0.21% lower at 1.0894, failing several attempts to regain 1.09 handle over the last hours. The main currency pair keeps the red and consolidates the downside below 1.09 barrier as the US dollar remains well bid on the back rising demand for risk currencies in wake of a minor recovery seen in Asian stocks. Nikkei 225 index is recovering losses and now drops -0.92%, while the Chinese equities extend higher in the positive territory on the back of new measures introduced by China to stabilize offshore yuan markets. The Shanghai Composite index jumps over 1%, with 3k mark back in sight.

    The EUR/USD’s corrective slide from two-week tops near 1.10 handle halts ahead of hourly 100-SMA at 1.0875, with markets now awaiting fresh cues from the European open in absence of no economic news in the session ahead. While the US markets remain closed in observance of Martin Luther King Day.

    Next on tap this week remains the German ZEW and inflation figures from both continents ahead of the key ECB policy meeting due later on Thursday.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0949/55 (daily R3/ 100-DMA). A break beyond the last, doors will open for a test of 1.0984/1.1000 (Jan 15 High/ round number). On the flip side, the immediate support is placed at 1.0874 (1h 100-SMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested.
    For more information, read our latest forex news.

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