EUR/USD under pressure as Stoxx 50 rallies

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair trades around the daily lows as the European stock markets opened on a positive note.

    Supported by 5-DMA

    The currency pair recovered slightly from the 5-DMA support located at 1.0875; however, the recovery is being capped on account of a 0.7% gain in the Euro Stoxx 50 index. As of now, the European investors have turned a blind eye towards the sharp drop in oil prices. The positive action in equities is capping demand for safe haven and funding currencies.

    The shared currency remains at the mercy of the overall market sentiment amid an empty economic calendar in Europe and US. The volumes may drop later as the US markets are closed on account of Martin Luther King holiday.

    EUR/USD Technical Levels

    The pair currently trades at 1.0880. The immediate resistance is seen at 1.0890 (38.2% of 1.1495-1.0517), above which the spot could test 1.0943 (Thursday’s high). On the other hand, a break below 1.0875 (5-DMA) would expose 1.0813 (50-DMA).
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