EUR/USD takes-out 100-DMA, rises to 1.0960 in early Europe

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone on the EUR keeps growing bigger as we progress towards the early European trades, now pushing EUR/USD beyond the mid-point of 1.09 handle.

    EUR/USD pushes higher amid stocks, oil sell-off

    Currently, the EUR/USD pair trades 0.45% higher at fresh session highs of 1.0960, having surpassed 100-DMA upside barrier. The main currency pair receives double impetus from the deteriorating risk environment, which boosts the demand for low-yielding/safe currencies such as the euro on one hand, while weighs on the risk currency US dollar on the other. The US dollar index drops -0.33% to fresh session lows of 98.83.

    Moreover, markets are looking to correct the entire slide to 1.07 handle, with 1.10 barrier now on sight ahead of the upcoming ECB meeting tomorrow. While the recent upbeat economic news from the Euro land continue to underpin sentiment around the EUR/USD pair.

    On the data-front, in absence of first-liner data, the second-tier one in the German PPI will be watched ahead of the US CPI report due in the NY session. The US Core CPI, excluding food and energy costs, is expected to accelerate to 2.1% y/y, the fastest pace since July 2012.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0984/1.1000 (Jan 15 High/ round number). A break beyond the last, doors will open for a test of 1.1050/59 (Dec 14 & 15 High). On the flip side, the immediate support is placed at 1.0905 (Daily Low), below which 1.0866/ 60 (Jan 19 Low/ 50-DMA) could be tested.
    For more information, read our latest forex news.

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