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EUR/USD stays below 1.12 amid gains in European equities

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/USD stays under pressure below 1.12 handle amid gains in the European equities and broad based USD rally.

    Dollar gains on Fed rate hike talks

    Hawkish talk from Fed policymakers has pushed up April/June rate hike bets. Furthermore, renowned doves like Evans are joining the rate hike bandwagon as well. Consequently, USD is trading on the front foot against most majors including EUR.

    Meanwhile, common currency is also under pressure due to a 0.70% rise in the pan-European blue chip Stoxx 50 index. Hence, pair stays around 1.1188; just a shy away from the daily low of 1.1180.

    EUR/USD Technical Levels

    The immediate hurdle is noted around 1.1250 (5-DMA + 61.8% of 1.1714-1.0517 + 100% Fibo of 1.0517-1.1060-1.0711), above which spot could target 1.13. If bears fail to defend the same, doors would be open for a re-look at last week’s high of 1.1336-1.1342. On the other hand, a breakdown of immediate support at 1.1173 (23.6% of 1.0517-1.1376) could see prices descend to 1.1115 (50% of 1.1714-1.0517) which if breached shall shift risk in favor of a drop to 1.1088 (50% of Mar 2015 low-Aug 2015 high).
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