EUR/USD Stays Below Key Fibo Level, Awaits German BUBA Report
The EUR/USD founds bids around 1.1250 in early Asia, but lacks momentum to test/take out 1.1293 (23.6% of May 2014 high-Mar 2015 low). The currency pair trimmed gains from 1.1285 to trade around 1.1270 levels.
Strong support around 1.1250
Confluence of key Fibo levels - 1.1257 (61.8% of 1.1714-1.0517) + 1.1253 (100% Fibo of 1.0517-1.1060-1.0711) - acted as a strong support on Friday. Spot jumped from near 1.1257 levels in Asia today, but lacked support to chew through hurdle at 1.1293, given the Asian stock markets were largely steady.
The data calendar is light with just German Bundesbank’s monthly report due for release. Across the pond, existing home sales figure and Chicago Fed national activity index is due for release, which will be followed by Fed’s Lockhart speech.
EUR/USD Technical Levels
A break below confluence of key Fibo levels - 1.1257 (61.8% of 1.1714-1.0517) + 1.1253 (100% Fibo of 1.0517-1.1060-1.0711) would open doors for a drop to 1.12 (5-DMA). A violation there would expose 1.1173 (23.6% of 1.0517-1.1376). Conversely, breach of immediate hurdle at 1.1293 (23.6% of May 2014 high-Mar 2015 low) would shift risk in favor of a rise to 1.1342 (Thursday’s high) and 1.1376 (Feb 11 high).
(Market News Provided by FXstreet)
