EUR/USD Runs into Confluence of Fibo level

EUR/USD Runs into Confluence of Fibo level

22 March 2016, 08:44
Roberto Jacobs
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EUR/USD Runs into Confluence of Fibo level

The bid tone around EUR recovered in Asia, pushing the EUR/USD pair to confluence of Fibo levels at 1.1257 (61.8% of 1.1714-1.0517) + 1.1253 (100% Fibo of 1.0517-1.1060-1.0711).

USD supported by rate hike talks

The spot is having a hard time taking out offers around the confluence of Fibo levels, given the USD shorts are being squared off after several key Fed officials made mildly hawkish remarks. Increased possibility of a sooner than expected rate hike is restricting further gains in the pair.

Ahead in the day, traders could take cues from German IFO number and preliminary PMI readings in Europe. Across the pond, regional Fed manufacturing index is due for release, followed by Fed’s Evans speech.

EUR/USD Technical Levels

The spot currently trades around 1.1253. A convincing break above hurdle at 1.1257 (61.8% of 1.1714-1.0517) + 1.1253 (100% Fibo of 1.0517-1.1060-1.0711) would turn attention to 1.13 and 1.1342 (Mar 16 high). Conversely prices may drop to 1.1182 (10-DMA) support if spot cuts through 5-DMA level of 1.1229. Below 10-DMA, the pair may extend losses to 1.1115 (50% of 1.1714-1.0517).

(Market News Provided by FXstreet)

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