EUR/USD: Upside capped by 1.1050, German data eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    EUR/USD is seen defending mild gains well above 200-DMA support, although remains capped by 1.1050 barrier heading into early European trades.

    EUR/USD supported at 200-DMA (1.1025)

    Currently, EUR/USD trades 0.06% higher at 1.1039, having failed to extend beyond 1.1049, daily highs. The main currency is seen well bid above 1.10 handle amid chatter of resting bids placed earlier on the electronic platforms at 1.1000 levels, while the recovery attempts run through fresh offers near 1.1050 levels.

    The major remains supported on the back of persistent risk-aversion and the resultant broad USD weakness, while a lack of fresh fundamentals triggers in the Asian session kept the bulls confined in a slim range.

    Markets now look forward to the German final GDP data ahead of the Ifo surveys due later in the upcoming European session ahead. While the sentiment on the European stocks will be also tracked before the US consumer confidence and housing data due later today.

    The business climate index is expected to head lower to 106.9 in February, from the 107.3 previous. The Current Assessment sub-index is also projected to slip further to 112.1 from the 112.5 booked in January and the expectations index - indicating firms' projections for the next six months - is seen as trending further down to 101.9 from the 102.4 pevious.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1083/87 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open for a test of 1.1100/06 (round number/ 1h 100-SMA). On the flip side, the immediate support is placed at 1.1025/21 (200-DMA/ daily low) below which at 1.0982 (50-DMA) could be tested.
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