FXStreet (Mumbai) – The recovery in the European stocks despite weakness in oil saw the EUR/USD pair suffer a 30-pip drop to near 1.0850 levels.
Offered below hourly 200-MA
Fresh offers came-in after the pair failed to sustain above the hourly 200-MA seen at 1.0873 levels. The pair had spiked to 1.0883 after the European stocks dropped around 0.80% in early trading. However, equities recovered losses and weighed over the common currency.
No first tier data is due for release in the Eurozone. Hence, the pair remains at the mercy of the action in the equity markets as we head towards the FOMC rate decision.
EUR/USD Technical Levels
The immediate resistance is seen at 1.0873 (hourly 200-MA) ahead of the major hurdle at 1.0890 (38.2% of 1.1495-1.0517). A break higher would expose 1.0940 (61.8% of Mar-Aug high). On the other hand, a break below 1.0841 (hourly 100-MA) could see the pair re-test 1.08 handle, which if taken out shall open doors for a drop to 1.0777 (Jan 21 low).
(Market News Provided by FXstreet)