FXStreet (Mumbai) – Having booked first weekly gains in three, EUR/USD kicked-off this week on a firmer note, before facing rejection near 1.0890 region and drifting towards session lows post-Tokyo open.
EUR/USD reverting towards 5-DMA?
Currently, the EUR/USD pair trades -0.10% lower at 1.0869, testing fresh session lows struck at 1.0865 last minutes. The main currency pair’s correction from near post-ECB highs halted at 5-DMA at 1.0838 on last Friday, with the pair now trying hard to regain recover lost ground and jump back above 1.09 handle.
EUR/USD came under renewed selling pressure this session after the US dollar caught fresh bid wave after US President Obama made a rare address to the nation from the Oval Office on the subject of terrorism, noting that ‘We will overcome’ any terror threat. Mr. Obama’s speech appears to restore investors’ confidence in the US economy and its currency. The USD index gains 0.14% to 98.40, at fresh session highs.
Moreover, markets moved past hawkish Draghi seen last week and shifted their attention towards the upcoming Fed Dec 16 meeting, with Friday’s stronger US jobs data (211k vs. 200k expected) confirming a Fed hike. Thereby, keeping the sentiment around the US dollar lifted.
On the data-front, this week remains relatively quiet with only US retail sales and consumer sentiment on the cards. While, today macro calendar offers second-tier data in Eurozone Sentix investor confidence and labour market conditions to be released from the US.
EUR/USD Technical Levels
The pair remains capped below 1.09 handle, with the immediate support seen at 1.0842/ 1.0838 (Nov 4 Low/ 5-DMA). Selling pressure will intensify below the last, dragging the pair towards 1.0817 (1h 50-SMA). To the top side, the next hurdle in sight is located at 1.0913 (50-DMA) and from there to 1.0958 (Dec 4 High).
(Market News Provided by FXstreet)