FXStreet (Mumbai) – EUR/USD met fresh supply once again near 1.10 handle and dropped sharply towards the opening price near 1.0970 region as the bullish momentum in the European stocks picked-pace.
EUR/USD capped below 1.1000
Currently, the EUR/USD pair trades almost flat at 1.0970, retracing sharply from daily highs printed at 1.0992 levels. The major finally succumbed to the ongoing upswing in the European indices, which now acts more like a funding currency amid negative key interest rates. The European stocks extended further to the upside with the German DAX now rising +1.58 versus 1.40% previous, the UK’s FTSE up 0.40% and the pan-European benchmark, the Euro Stoxx 50 jumping +1.43% versus a 1.20% rise seen earlier.
The EUR bears continue to guard the 1.10 barrier in the run up to the New Year, with the European traders awaiting fresh batch of economic data from the Euroland due out on Wednesday, after a quiet beginning to the final week of 2015. Meanwhile, the goods trade balance, consumer confidence and S&P/CS Composite-20 HPI y/y data from the US will be reported later today.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.1000 region (round umber). A break beyond the last, doors will open for a test of 1.1020 (100-DMA). On the flip side, the immediate support is placed at 1.0942 (Dec 28 Low), below which 1.0913 (1h 200-SMA) could be tested.
(Market News Provided by FXstreet)