EUR/USD spikes to 100-DMA, beyond 1.0900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR/USD pair caught a sudden bid-wave and witnessed a 50-pips spike over the last hour after the common currency received fresh boost from impressive Spanish fundamentals.

    EUR/USD jumped-off hourly 200-SMA

    The EUR/USD pair halted its corrective slide just ahead of hourly 200-SMA support located at 1.0869 and rebounded sharply higher beyond 1.09 handle after a fresh set of upbeat Spanish data rescued the EUR bulls from daily lows. At time of writing, EUR/USD trades near fresh weekly highs of 1.0925, up 0.21% on the day.

    The unemployment rate in Spain was 20.9% in Q4 2015, an improvement from the previous figure of 21.18% and better than forecast, and stands at the lowest level since Q2 2011. While the Spanish retail trade posted a growth of 3.2% y/y in December, mildly lower than the 4.2% growth booked previously.

    Further adding to the upbeat sentiment around the EUR/USD pair, the European stocks have pared initial gains and are seen turning lower, with the German DAX down -0.34%. Meanwhile, attention now remains on the German prelim CPI numbers ahead of a host of US macro updates due later in the NY session. The US durable goods data will be closely eyed by markets, as it is considered as a proxy for the US GDP that will be reported tomorrow.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0941/ 57 (Jan 19 High/ daily R2). A break beyond the last, doors will open for a test of 1.0997/ 1.1000 (daily R3/ round). On the flip side, the immediate support is placed at 1.0870/67 (1h 200-SMA/ 10-DMA), below which 1.0803 (Jan 13 Low) could be tested.
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