EUR/USD wavers between key hourly MAs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - A renewed rally in EUR/USD fizzled in the recent dealings, with the prices now drifting back below 20-DMA located at 1.0938.

    EUR/USD capped by hourly 100-SMA

    Currently, the EUR/USD pair trades almost unchanged at 1.0927, fading a spike to session highs printed at 1.0944. The main currency pair is seen struggling on the bids as the European markets halt their downslide and witness a minor recovery, thereby easing risk-off moods somewhat.

    However, the downside remains cushioned as markets continue to seek the safe-haven appeal of the euro in wake of a sharp drop in oil prices. The US oil sinks nearly -2.50% while the Brent oil slides -1.55%.

    Nothing relevant in terms of economic news is due to be reported in the day ahead, except for the US pending home sales data, which is likely to have virtually no impact on the major as traders are closing their positions on the last full trading day of this year.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance is seen at 1.0946 region (1h 100-SMA). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0913 (1h 200-SMA), below which 1.0886 (daily S1) could be tested.
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