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EUR/USD: Upside capped by hourly 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/USD pair continues to consolidate the upside and hovers in the upper band of 1.08 handle as mixed Asian session on mixed US dollar, keeps the major underpinned.

    EUR/USD supported above 10-DMA at 1.0862

    Currently, the EUR/USD pair trades 0.18% higher at 1.0880, having revisited daily highs at 1.0885 last minutes. The mixed sentiment seen in Asia appears to extend into Europe, with markets continuing to favour the safe-havens amid a lack of fresh fundamental triggers. While a broadly lower greenback, gauged by the US dollar index, also aids the recovery in the major.

    While the continued decline in the oil prices rattles investors’ confidence in risk currencies, such as the US dollar and hence, keeps EUR/UD supported heading into Europe. Moreover, solid gains seen in the EUR/GBP cross largely on GBP weakness, further supports the upside in EUR/USD.

    Looking ahead, the broader markets sentiment and oil price movement will continue to dictate further moves in the pair

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0900/07 (round number/ 5-DMA) A break beyond the last, doors will open for a test of 1.0970/72 (Jan 11 High/ 100-DMA). On the flip side, the immediate support is placed at 1.0851/41 (1h 100-SMA/ daily low), below which 1.0825 (50-DMA) could be tested.
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