EUR/USD stuck in 15-pips tight range

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair extends its overnight consolidative mode in early Europe, and wavers above 1.06 handle, as the USD bulls take a backseat amid low volumes.

    EUR/USD off multi-month lows

    Currently, the EUR/USD pair trades 0.08% lower at 1.0618, finding it difficult to extend beyond 5-DMA at 1.0631. The main currency pair lacks direction and continues its consolidation to the downside, stalling the recovery from fresh seven-month lows at 1.0640 levels.

    The major managed to recover lost ground somewhat, although lacked follow-through as the US dollar clinches yesterday’s gains and is expected to resume its upward momentum in a bid to retest multi-month highs reached beyond 100 mark on Wednesday.
    More so, ECB mulls several plans to expand stimulus next week as noted yesterday keeps EUR/USD undermined while the latest upbeat US macro data double-confirmed a Dec rate rise.

    Looking ahead, in absence of significant economic data, the second tier releases from the Euro zone - money supply and the German Gfk consumer climate, will be eyed for further momentum. While thin trading is expected in the day ahead as the US traders are away on their Thanksgiving holiday-break.

    EUR/USD Technical Levels

    The pair struggles above 1.06 handle, with the immediate support seen at 1.0600/1.0593 (round number/ Nov 23 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0568 (Nov 25 Low). While to the upside the next hurdle in sight is located at 1.0634 (1h 50-SMA) and from there to 1.0663 (1h 200-SMA).
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