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EUR/USD stuck in tight range around 5-DMA, FOMC in focus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/USD pair continues to trade around a flat-line in the late-Asian trades, miring near the lower end of the recent trading range on 1.10 handle.

    EUR/USD rejected at 1.1050 levels

    The EUR/USD pair trades -0.10% lower at 1.1033, languishing near session lows struck at 1.1025 in mid-Asia. The shared currency extends its downward momentum versus its American counterpart as markets favour the US currency heading into the FOMC decision.

    Moreover, renewed bouts of risk-aversion witnessed in Asia ahead of central banks’ events sent the US dollar higher across the board, despite poor economic data released from the US last session. The greenback is now acting as a risk-off currency as seen last week.

    Looking ahead, the major may tread water as markets remain wary ahead of Fed decision. Meanwhile, with little on the EUR calendar to track, EUR/USD might be influenced by the sentiment on the European stocks and the Wall Street.

    EUR/USD Technical Levels

    The pair failed near 1.1050 levels and heads lower towards the immediate support located at 1.1002/00 (daily S1 + psychological levels) might be reached. Selling pressure will intensify below the last, dragging the pair towards 1.0956/59 (daily S2 + Aug 11 Low) and below that 1.0840 levels could be exposed. While to the upside, 1.1070/81 (Monday’s High + 200-DMA) appears immediate resistance, beyond which 1.1100 (round number) would be tested. A break above the last, 1.1154 (100-DMA) would come into the picture.
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