EUR/USD slips as European stock futures rise

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/USD slipped lower to 1.1152 as the major European stock futures indicate the indices are likely to open strong following Thursday’s drop.

    Trades below 23.6% Fibo

    Having failed to sustain above 1.1173 (23.6% of 1.0517-1.1376), the spot is trading on a weak footing. The pair’s sharp rally yesterday caught many by surprise, especially since the ECB delivered the goods. Equity markets dipped as well, adding to the bullish tone around EUR.

    However, European desks are offering EUR today as yesterday’s move might be an overreaction. The economic calendar is thin; hence the doors are open for profit taking after Thursday’s sharp rally.

    EUR/USD Technical Levels

    The immediate support is seen at 1.1115 (50% of 1.1714-1.0517), under which the pair could drop to 1.1086 (Feb 8 low). If taken out, the spot could test 1.1045 (200-DMA). On the other hand, a break above 1.1173 (23.6% of 1.0517-1.1376) could see the pair re-test 1.1218 (previous day’s high). A break higher would expose 1.1296 (23.6% of May 2014 high-Mar 2015 low).
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