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EUR/USD spikes to 1.0935 on ECB chatter

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The shared currency stormed through the 1.09 barrier against its American rival in the European morning, now pushing EUR/USD towards fresh session highs.

    EUR/USD sees a 50-pips brief rally from 1.0880

    Currently, the EUR/USD pair trades 0.41% higher at 1.0922, retreating quickly from fresh session highs of 1.0934, having finally surpassed 1.09 handle. The bid tone around the EUR/USD pair strengthened further over the last hours as the euro received fresh impetus from the latest article published by Reuters, citing that the ECB policymakers are sceptical about the need for further policy action in near-term.

    Adding to the upside in the major, the European stocks are accelerating to the downside as the latest ECB chatter squashed hopes for further easing for now. Germany’s DAX drops -2.50%, the UK FTSE slides -2.03% while the Pan-European benchmark, the Euro Stoxx 50 tanks -2.38%.

    Meanwhile, focus remains on developments surrounding the Euro group meetings, while markets continue to remain jittery amid falling stocks and lower oil prices.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0963/69 (100-DMA/ Jan 11 High). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0843/ 34 (1h 200-SMA/ 50-DMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested.
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