EUR/USD turns negative, hits fresh lows below 1.0850

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 (Córdoba) - The euro weakened across the board as crude oil and stocks rebounded sharply. EUR/USD dropped during the last hour more than 70 pips, falling from 1.0910 to 1.0837, hitting a fresh daily low.

    Despite the recent decline it continues to trade between the range of the last few days, around 1.0850; unable to hold above 1.0900 and with support on top of 1.0800.

    Oil jumps, stocks follow

    A recovery in crude oil prices triggered a rally in the stock market and in commodity currencies. The barrel (WTI) jumped from $30.80 to $31.60, to test yesterday's highs. At the same time, the US dollar gained momentum against European currencies and also versus the yen. The Dow Jones was falling modestly at the beginning of the American session and now is up by more than 1%.

    EUR/USD reversed sharply with the rally amid risk appetite and erased gains. It is trading slightly above the lows, under pressure, approaching the key short-term support located at 1.0800.

    The euro also weakened versus the pound and dropped further, extending the retreat from multi-month highs while EUR/CHF also reversed and reached a fresh low under 1.0930.
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