EUR/USD: Upside capped near 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The EUR bulls took a breather in its upsurge in the early Asian trades, with EUR/USD clinching to Tuesday’s gains ahead of another data-quiet session today.

    EUR/USD capped below 1.0900

    Currently, the EUR/USD pair trades modestly flat at 1.0887, oscillating in a 10-pips tight range. The main currency pair is seen consolidating to the upside before next leg higher, and struggles to extend beyond stiff resistance near 50-DMA located at 1.0894 post-NY close.

    However, the major finds some support from the negative sentiment on the Asian markets, with the regional indices extending losses for the second straight session on the back of ongoing rout in oil. Japan’s Nikkei loses -0.30%, Australia’s S&P/ASX trades flat while China A50 index drops -1.34%, as all eyes now turn to the Chinese inflation numbers for fresh incentives.

    On the data front, in absence of first-tier data releases, trade balance data from Germany will be watched. However, the economic data are expected to have virtually no impact on the major this week as the main highlight remains the Fed meeting scheduled on Dec 16.

    EUR/USD Technical Levels

    The pair trades closer to 1.09 handle, with the next hurdle in sight is located at 1.0894/ 1.09 (50-DMA/ round number) and from there to 1.0958 (Dec 4 High). To the downside, the immediate support is seen at 1.0857 (1h 50-SMA). Selling pressure will intensify below the last, dragging the pair towards 1.0829 (1h 100-SMA).
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