FXStreet (Mumbai) – EUR/USD continues to languish near daily lows amid minimal volatility during the European session, as firmer European stocks and rising odds of Dec Fed rate hike pose a double whammy for the shared currency.
EUR/USD: post-FOMC lows near 1.09 within reach
The EUR/USD pair trades -0.38% lower at 1.0921, keeping range near fresh daily lows struck at 1.10914 in recent dealings. The bears continue to dominate this session as stronger performance on the European equities, boosts investors’ sentiment towards riskier assets.
Germany’s DAX trades flat, the UK’s FTSE rallies +1.11% while the Euro Stoxx 50 gains 0.75% so far.
Moreover, increasing demand for the US dollar ahead of a slew of US macro updates and Fed speaks; also weigh heavily on EUR/USD. Markets now await the US ADP jobs data and Fed Yellen’s speech due later in the NY session for fresh hints on the Dec Fed rate hike prospects. The ADP employment numbers are expected to drop from Sept’s 200k to 180k in Oct.
Analysts at the Bank of Tokyo-Mitsubishi noted, “While we were initially quite excited about what this might bring us in regard to the outlook for monetary policy, we are now not quite sure how much light these speaking engagement will throw on the dark unknown that is whether the Fed will raise rates in December.”
EUR/USD Technical Levels
The pair recovers keeps lows and eyes the immediate support seen at 1.0903/00 (Oct 29 Low/ round number). Selling pressure will intensify below the last, dragging the pair towards 1.0840 (Aug lows) and below that 1.0800 (psychological levels) could be exposed. To the upside, the next hurdle is located at 1.0966/78 (Today’s High/ daily pivot). A break above the last, the prices could climb further towards 1.0995/1.1000 (10-DMA/ psychological levels), from there to 1.1014/21 (1h 200-SMA/ daily R1).
(Market News Provided by FXstreet)