EUR/USD Stays Weak Despite 1% Drop in Stoxx 50 Index

EUR/USD Stays Weak Despite 1% Drop in Stoxx 50 Index

24 March 2016, 10:21
Roberto Jacobs
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EUR/USD Stays Weak Despite 1% Drop in Stoxx 50 Index

The drop in the European equity markets is offering no support to the common currency, leaving the EUR/USD pair weaker around 1.1160 levels.

Fed rate hike talks weigh

Stoxx 50 index is down 1%, with major indices – DAX, FTSE, CAC – trading lower by 0.7% to 1.2%. However, the carry unwind has failed to offer relief to the EUR/USD pair, which is trading down for the 5th straight day.

Moreover, hawkish comments from Fed officials and the resulting rise in April/June rate hike bets is keeping the bird under pressure.

Traders await the US data release – initial jobless claims and durable goods orders. fEd’s Bullard due to speak later today would attract market attention s well. Volumes may remain weak on account of a holiday shortened week.

EUR/USD Technical Levels

The immediate hurdle is noted at 1.1173 (23.6% of 1.0517-1.1376), above which the pair could target 1.12 and 1.1257 (61.8% of 1.1714-1.0517). On the other hand, a breakdown of immediate support at 1.1115 (50% of 1.1714-1.0517) would shift risk in favor of a slide below 1.11. Next major support is seen at 1.1044 (200-DMA).

(Market News Provided by FXstreet)

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