EUR/USD treads water around 1.0880, awaits fresh impetus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair remains capped below 1.09 handle, with several attempt to the upside sold-off near the last, as risk-aversion dissipates amid Asian stocks recovery.

    EUR/USD: another dip towards lows?

    Currently, the EUR/USD pair trades modestly flat at 1.0878, failing another attempt to conquer 1.09 handle. The main currency pair continues to consolidate the overnight recovery below 1.0900 levels and now awaits fresh impetus from the European open, to confirm further upside.

    The gains in the EUR/USD pair remains capped on the back of healthy recovery seen in the Asian equities, with the Chinese indices turning in the green zone and the Nikkei pared losses at close. Moreover, the minor pullback in oil prices also bettered the risk conditions a bit, weighing negatively on the major.

    Markets now await the second-tier in the German WPI ahead of the European open, while the US jobless claims and Fed’s Bullard’s speech will be closely eyed in the NY session.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0893/1.0900 (20-DMA/ round number). A break beyond the last, doors will open for a test of 1.0963/69 (200-DMA/ Jan 11 High). On the flip side, the immediate support is placed at 1.0842/ 34 (1h 200-SMA/ 50-DMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested.
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