EUR/USD supported on risk-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/USD is bid on the back of the Yuan fix and a weaker yuan again, which is not good for risk appetite. The US dollar is sharply lower across the Yen as the yen benefits from risk-off mood and cross flows support EUR/USD in this case.

    The Chinese stock markets are opening now and their performance need to be monitored and then we will look towards the Nonfarm Payrolls at the end of the week and taking note from the ADP report overnight as a possible prelude to a positive outcome supporting the Fed's motive to continue hiking rates gradually. However, the FOMC minutes showed that Dec hikes was a close call.

    EUR/USD levels

    Technically, EUR/USD the bearish tone prevails as noted by Valeria Bednarik, chief analyst at FXStreet, "In the 4 hours chart, however, the price is still below a bearish 20 SMA, while the technical indicators are barely bouncing from oversold levels, suggesting the upside will remain limited as long as the price remains below 1.0810." Also, given that we are trading below the range of 1.10819/1.0796 which was the May low, the July low, the 7th December lows, 1.0523 recent lows are in sight on further downside.
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