FXStreet (Mumbai) – The EUR/USD pair extends its consolidative phase into early Europe, with the bulls still fighting hard to regain 1.10 barrier.
EUR/USD defends gains on weaker USD
Currently, the EUR/USD pair rises 0.08% to 1.0972, unable to extend beyond 1.0978 session highs. The recovery in the EUR/USD pair from near hourly 50-SMA lost steam near 1.0980 region, with the major still consolidating last week’s gains below 1.10 handle.
In recent dealings, the EUR/USD pair is seen wavering in a 15-pips narrow range amid lack of clear direction as most major European markets remain closed today in observance of Boxing Day. While limited macro data is expected to be offered in this holiday-shortened week as Christmas-New Year lull continue to persist until next Monday.
Meanwhile, from a broader perspective, the post-FOMC corrective slide in the US dollar is likely to be short-lived and the major is expected to remain pressured going forward on the back of divergence in the monetary policy outlooks between the Fed and ECB.
EUR/USD Technical Levels
The pair attempts recovery and finds the immediate resistance at 1.0980 region (daily high at 1.0978). A break beyond the last, doors will open for a test of 1.1000 (psychological levels). On the flip side, the immediate support at 1.0942 (daily low), below which 1.0914 (1h 200-SMA) could be tested.
(Market News Provided by FXstreet)