EUR/USD treading water near 1.0900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The common currency is trading almost unchanged vs. the dollar on Thursday, with EUR/USD wobbling around the 1.0900 figure so far.

    EUR/USD focus on ECB, Draghi

    Spot has started the year meandering around the 1.0900 handle against a global backdrop of increasing risk aversion stemming from the collapse of crude oil prices and the swelling uncertainty over the health of the Chinese economy.

    Absent major catalysts around the pair, today’s ECB meeting does not carry any condition of a potential market-mover, although the subsequent press conference by M.Draghi could spark bouts of volatility, with inflation figures in the euro area and crude oil prices likely to be in the limelight.

    EUR/USD levels to watch

    The pair is up 0.02% at 1.0894 with the immediate support at 1.0860 (61.8% Fibo of 1.0538-1.1059) followed by 1.0709 (low Jan.5) and then 1.0538 (low Dec.3). On the flip side, a break above 1.0987 (high Jan.15) would target 1.0997 (100-day sma) en route to 1.1059 (high Dec.15).
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