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21 Jan 2016
EUR/USD testing 1.0900, risk-off back in vogue
FXStreet (Mumbai) - Fresh bids emerged for the EUR/USD pair just ahead of 50-DMA at 1.0862, and pushed the prices higher towards 1.09 handle over the last hours amid rising demand for safe-havens.
EUR/USD looks to regain 1.09 barrier
Currently, the EUR/USD pair trades modestly higher at 1.0894, testing fresh session highs reached at 1.0900 last minutes. The demand for the shared currency received fresh boost from the renewed weakness in the Asian equities, which spurred fresh round of risk-aversion into the markets, with investors running for cover in search of low-yielding/safe currencies, thus bidding up EUR/USD.
However, the major continued to trade in a narrow 1.0868 – 1.0900 range in Asia, with the initial risk-on moves following higher opening in the Japanese stocks, lacked follow through as oil prices failed to hold to their recovery from multi-year lows and fell back in the red.
Looking ahead, the ECB decision is expected to emerge the key risk event for the EUR/USD pair later today, with all eyes focused on Draghi’s press conference for any hint on further easing or depo rate cut in the coming months. While its widely expected that the ECB will keep the decision powder-dry.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0946/50 (100-DMA/ psychological levels). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0862 (50-DMA), below which 1.0841/33 (daily S1/ Jan 14 Low) could be tested.
EUR/USD looks to regain 1.09 barrier
Currently, the EUR/USD pair trades modestly higher at 1.0894, testing fresh session highs reached at 1.0900 last minutes. The demand for the shared currency received fresh boost from the renewed weakness in the Asian equities, which spurred fresh round of risk-aversion into the markets, with investors running for cover in search of low-yielding/safe currencies, thus bidding up EUR/USD.
However, the major continued to trade in a narrow 1.0868 – 1.0900 range in Asia, with the initial risk-on moves following higher opening in the Japanese stocks, lacked follow through as oil prices failed to hold to their recovery from multi-year lows and fell back in the red.
Looking ahead, the ECB decision is expected to emerge the key risk event for the EUR/USD pair later today, with all eyes focused on Draghi’s press conference for any hint on further easing or depo rate cut in the coming months. While its widely expected that the ECB will keep the decision powder-dry.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0946/50 (100-DMA/ psychological levels). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0862 (50-DMA), below which 1.0841/33 (daily S1/ Jan 14 Low) could be tested.