EUR/USD sold-off at 5-DMA, retreats to 1.0860

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The upbeat momentum in the EUR/USD pair remains intact post-European open, although the renewed bout of buying lost steam at 5-DMA and the price eased-off highs.

    EUR/USD supported on negative European equities

    Currently, the EUR/USD pair trades 0.31% higher at 1.0868, retracing from fresh session highs of 1.0882, where the 5-DMA coincides. The main currency pair caught a fresh bid tone after the European markets opened on a weaker note, joining the global sell-off, and thus, boosted the traditional safe-haven status of the common currency.

    However, the major failed to extend beyond 5-DMA barrier and retreated slightly as the European stocks lack through and appear to recover losses, easing risk-off moods. The German DAX now loses -0.30% versus -0.50% previous and the Euro Stoxx 50 drops -0.27% versus previous -0.42%.

    Calendar-wise, nothing of relevance in terms of economic news for the EUR is lined up for release this session except for the Euro zone revised GDP figures. While the NY session offers JOLTS job openings data from the US. However, the data releases are expected to virtually have no impact on the major.

    EUR/USD Technical Levels

    The pair trade firmer above 1.08 handle, with the next hurdle in sight is located at 1.0882/88 (5-DMA/ Dec 7 High) and from there to 1.0902 (50-DMA). To the downside, the immediate support is seen at 1.0845 (1h 20-SMA). Selling pressure will intensify below the last, dragging the pair towards 1.0800/ 1.0796 (round number/ Dec 7 Low).
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