EUR/USD stays below 1.09 despite weak US data

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair moved couple of pips higher on weak US data, but remains below 1.09 levels as investors price-in possibility of more ECB rate cuts.

    Hovers around key Fibo level

    The pair is hovering around 1.0890 (38.2% of 1.1495-10517) levels. The pair made an attempt to near 1.09 handle after the data in the US showed the initial jobless claims rose more than expected last week. However, the bearish pressure on the EUR remained intact. Moreover, the ECB minutes released today opened doors for more rate cuts in the future.

    Ahead in the day, Fed’s Bullard speech may affect the overall demand for the US dollar. The investors would also watch out for any signs of carry unwind due to a possible risk aversion in the US stocks.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.0940 (61.8% of Mar-Aug rally), above which the pair could rise to 1.10 levels. On the other hand, a break below 1.0854 (daily low) would expose 50-DMA at 1.0813.
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