EUR/USD supported at 1.1100 in early Europe, PMIs eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The EUR/USD pair appears to have found some support just ahead of 1.11 handle and recovers ground somewhat over the last hours amid ongoing risk-off trades.

    EUR/USD confined below 5-DMA

    Currently, EUR/USD trades -0.18% lower at 1.1111, languishing near daily lows reached at 1.1105. The main currency pair keeps losses as the recovery attempts are seen meeting supply near 5-DMA at 1.1121. The risk-on rally seen in the equities coupled with the broad based US dollar strength, keeps the EUR/USD recovery capped.

    However, the downside also remains cushioned and the pair manages to hold onto 1.11 handle as the strong gains in the EUR/GBP cross continue to underpin the common currency. EUR/GBP consolidates around 0.7780, recording a 0.70% gain so far. The ongoing weakness surrounding the cable on Brexit news is helping the rally in EUR/GBP.

    Markets now await a raft of flash manufacturing and services PMI reports from across the Euro area economies as also the US manufacturing PMI report due later in the NY session.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1150/53 (psychological levels/ Feb 18 High). A break beyond the last, doors will open for a test of 1.1197/1.1200 (1h 200-SMA/ round number). On the flip side, the immediate support is placed at 1.1084 (Feb 8 Low) below which at 1.1068/64 (Feb 18 & 19 Low) could be tested.
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