EUR/USD minor recovery targets 1hr 55 SMA
FXStreet (Guatemala) – EUR/USD is currently trading around the pivot with a high of 1.1059 and a low of 1.0998.
EUR/USD is trying to recover from the strong headwinds instigated by the ECB meeting and subsequent dovish tone in Draghi’s rhetoric when he was warning of the negative implications China and EM’s offer to the headway that the EZ had been making domestically due to the current QE that was otherwise making the intended effects. The door was left wide open for further easing and that has weighed heavily on the outlook for the single currency.
As a results, as we have seen before in late August and throughout the downward cycle of 2014, the euro is taking up its position as a funding currency again and is opening up the downside on the charts again having penetrated back below the 200 DMA at 1.1118. The week ahead comes with a number of key data releases from the US, as well as the FOMC, German and EZ jobs and EZ CPI’s.
EUR/USD levels
Technically, while below the 200 DMA at 1.1118, and having surged strongly lower, now below the 1.10 handle creating and the largest disparity between price and the cluster of MA’s since the August rally, the 30 year channel at 1.0560 and 1.0457 is now exposed.
For the near term, a fade back below the 1.10 handle might be expected with the pivot at 1.055 and the 55 SMA at 1.1088, both offering immediate resistance, S1 stands at 1.0935 ahead of S3 at 1.0881.
EUR/USD is currently trading around the pivot with a high of 1.1059 and a low of 1.0998…trying to recover from the strong headwinds instigated by the ECB meeting and subsequent dovish tone in Draghi’s rhetoric when he was warning of the negative implications China and EM’s offer to the headway that the EZ had been making domestically…
(Market News Provided by FXstreet)