The EUR/USD pair appears to have stalled its post-ECB corrective slide in the mid-Asian trades, and the price now consolidates on the bids above 1.1100 levels.
EUR/USD capped below daily pivot at 1.1117
Currently, EUR/USD trades modestly flat at 1.1111, having posted session lows at 1.1094 at Tokyo-open. The main currency pair is seen trading around a flat-line almost through the Asian session thus far, although manages to climb back on the bids as the worsening risk sentiment continues to support the safe-haven euro. The Asian stocks drop 1% to 1.50% as BOJ squashed further easing hopes, while broad commodities sell-off also continues to dampen investors ‘sentiment.
However, the upside seems restricted as markets remain on the back foot as the Fed 2-day policy meeting commences today. While markets expect the Fed to refrain from raising rates tomorrow, the focus will remain on the Fed’s comments on the global headwinds as well as on the USD level. Also, FOMC SEP will be closely eyed for fresh cues on the US economic outlook.
In the meantime, markets now look forward to the US retail sales, PPI and hosing data due later in the NY session for fresh USD moves.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1130/41 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1050/41 (psychological levels/ 200-DMA) below which at 1.1014/00 (daily S2) could be tested.
(Market News Provided by FXstreet)
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