EUR/USD cautious start to the ECB week, Below 1.1000

EUR/USD cautious start to the ECB week, Below 1.1000

7 March 2016, 04:56
Roberto Jacobs
EUR/USD cautious start to the ECB week, Below 1.1000

The EUR/USD pair witnessed a minor bearing opening gap this Monday, falling nearly 20 pips form above 1.10 handle, and now extends further to the downside amid broad based US dollar recovery.

EUR/USD capped by 1.1000

Currently, EUR/USD trades -0.15% lower at fresh session lows of 1.0985, retreating from daily tops reached at 1.1012 in opening trades. The main currency pair halted its 3-day rally and turned lower this session as the US dollar recovers some ground against its major peers after Friday’s post-US jobs slide. The USD index advances 0.13% to 97.38, recovering from just ahead of 97 handle.

Moreover, markets remain cautious heading into the ECB monetary policy decision due later this week, with wide expectations that the 19-nations bloc’s central bank could go for further easing by cutting its depo rate by another 10bps.

On Friday EUR/USD jumped to fresh 5-day highs near 1.1050 after the US jobs data failed to impress USD bulls and hence, triggered a sharp sell-off in the buck. The headline NFP numbers outpaced expectations, but the wages disappointed markets, booking the first drop since December 2014.

In the day ahead, focus will remain on the German factory orders, Euro zone Sentix investor confidence index and the Euro group meetings for fresh cues on the major, while the US labour market conditions report and Fed officials’ speeches will be closely eyed.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1000 (round figure). A break beyond the last, doors will open for a test of 1.1046/55 (200 & 20-DMA). On the flip side, the immediate support is placed at 1.0961/52 (5 & 10-DMA) below which at 1.0918/05 (100-DMA/ 1h 100-SMA) could be tested.

(Market News Provided by FXstreet)
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