EUR/USD trims losses, hovers around 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - EUR/USD’s overnight decline stalled near 1.0810 region and the major now makes recovery attempts above the 50-DMA at 1.0827 amid persisting risk-on rally in the Asian equities.

    EUR/USD drops further on firmer USD

    Currently, the EUR/USD pair trades -0.29% lower at 1.0829, bouncing-off session lows struck at 1.0812 over the last hours. The main currency pair came under renewed selling pressure this session after the risk-on environment was further lifted by impressive Chinese trade numbers, diminishing the bids for the safe-havens such as the EUR, JPY etc.

    Moreover, the US dollar also got a lift from President Obama’s optimistic comments on the economy and also from the risk-on rally seen in the Asian indices. Furthermore, the rising US treasury yields also support the upside in the greenback and thus, weigh on EUR/USD. The 2-yr treasury yields jump 2.12% to 0.944% while the benchmark 10-year yields rally 1.66% to 2.135%.

    In the day ahead, amid a lack of first-tier macro releases from the Euro land, the focus remains on the second-line of data in the industrial production. While from the US docket, only the EIA weekly crude stockpiles report will be published.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0849/55 (1h 200-SMA/ 10-DMA) A break beyond the last, doors will open for a test of 1.0893/1.0900 (20-DMA/ round number). On the flip side, the immediate support is placed at 1.0801/00 (Jan 8 Low/ psychological levels), below which 1.0770 (daily S2) could be tested.
    For more information, read our latest forex news.

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