EUR/USD sits above 1.08 as Stoxx 50 futures down 0.20%

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair sits comfortably above 1.08 and points northwards as the Euro Stoxx 50 futures point to a moderate risk-off ahead.

    Eyes 50-DMA

    At 1.08115, the spot is trading a few pips short of the 50-DMA seen at 1.0823 levels. The EUR found bids earlier today around 1.0788 (50% of 1.0517-1.1060) despite the rise in the major Asian stocks markets. However, crude prices are back in the red in early Europe, hence, the Stoxx 50 futures are indicating the major European indices are likely to open moderately in the red.

    Ahead in the day, the equities could remain a primary driver of the EUR/USD pair. The German IFO readings and the Bundesbank’s monthly report could influence ECB’s easing bets and affect the EUR.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.0823 (50-DMA)+1.0835 (hourly 50-MA). A break higher would expose 1.0870-1.0878 (hourly 100-MA and hourly 200-MA), which if taken out shall open doors for 1.09 levels. On the other hand, a break below 1.0788 (50% of 1.0517-1.1060) could see the pair fall back to 1.0748 (23.6% of 1.1495-1.0517).
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