14 Januari 2016 4:02 AM
FXStreet (Mumbai) - The bears continued to guard the 1.09 barrier and pushed EUR/USD lower after a failed attempt to the last, with the prices finding some support ahead of hourly 100-SMA at 1.0871.
EUR/USD testing daily lows
Currently, the EUR/USD pair trades modestly flat at 1.0878, revisiting daily lows reached at 1.0873 in opening trades. The main currency pair fades a spike to 1.09 handle and drifts slightly lower as the greenback is seen slowly picking-up pace against its major peers.
However, the downside seems limited as the collapse in the Asian equities continue to hamper investors’ sentiment and therefore, underpins the demand for fund currency in the euro. In times of uncertainty and market turmoil, risk-appetite goes down and hence, investors run for cover in low-yielding currencies to fund their investments in higher-yielding assets such as equities.
In the day ahead, we have second-tier in the German WPI will be on the cards in the European session ahead of the US jobless claims due for release in the NY session. While focus will remain on the oil price action and Fed speaks for further momentum.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0893/1.0900 (20-DMA/ round number). A break beyond the last, doors will open for a test of 1.0963/69 (200-DMA/ Jan 11 High). On the flip side, the immediate support is placed at 1.0842/ 34 (1h 200-SMA/ 50-DMA), below which 1.0801/00 (Jan 8 Low/ psychological levels) could be tested.
The bears continued to guard the 1.09 barrier and pushed EUR/USD lower after a failed attempt to the last, with the prices finding some support ahead of hourly 100-SMA at 1.0871.
(Market News Provided by FXstreet)
