EUR/USD trims gains, drops to 200-DMA as European stocks rise

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The stocks markets in Europe opened higher, establishing risk-on trade and thus pushing the EUR/USD pair back to its 200-DMA located at 1.1047 .

    German regional CPI rises

    The first of the German preliminary regional CPI release hit the wires. Saxony CPI rose 0.3% m/m compared to the 0.9% drop registered in the previous month. However, the positive figure was overshadowed by the rally in European stocks.

    The pan-European Euro Stoxx 50 index advanced almost 1% and strengthened the offered tone around the funding currency EUR. Consequently, the pair fell from the daily high of 1.1068 to trade just below its 200-DMA at 1.1047.

    EUR/USD Technical Levels

    The immediate resistance is seen at 1.1076 (10-DMA), above which the spot could target 1.11 handle. A break higher would expose 1.1126 (weekly high). On the other hand, a breakdown of the immediate support at 1.10 could see the pair drop to 1.0975 (50-DMA), under which 100-DMA at 1.0953 could act as a strong support.
    For more information, read our latest forex news.

Share This Page

free forex signals