EUR/USD: Upside capped by 5-DMA, US GDP eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 24, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair caught a fresh bid tone near hourly 20-SMA at 1.0635 in last hours and swung back higher for a retest of daily highs, only to face strong hurdle near 5-DMA at 1.0662.

    EUR/USD trades choppy in Europe

    Currently, the EUR/USD pair trades 0.09% higher at 1.0647, recovering of a brief dip to 1.0635 levels. The main currency pair struggles to extend gains beyond 1.0660 region and drifts lower once again near the mid-point of 1.06 handle, in response to the declining German yields. Germany’s benchmark 10-year bund yields drop over 6% to 0.502 amid increasing odds of more stimulus by the ECB at its Dec 3 meeting.

    However, the EUR/USD pair remains supported on the back of sharp losses seen on the European stocks and broad based US dollar retreat. Germany’s DAX drops 1%, while the UK’s FTSE loses 0.90%. The Euro Stoxx 50 dives -1.24%.

    Markets continue to digest the upbeat Ifo surveys while the focus now turns towards the US prelim GDP report due later in the session ahead.

    EUR/USD Technical Levels

    The pair trades above 1.06 handle, with the immediate support seen at 1.0600/1.0593 (round number/ Nov 23 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April lows). While to the upside the next hurdle in sight is located at 1.0666 (1h 100-SMA) and from there to 1.0700 (round number).
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