EUR/USD Holds Ground Above 1.1150 Amid USD Strength

EUR/USD Holds Ground Above 1.1150 Amid USD Strength

28 March 2016, 06:06
Roberto Jacobs

EUR/USD Holds Ground Above 1.1150 Amid USD Strength

The EUR bears took a breather from their recent downslide, now allowing a tepid bounce in EUR/USD from near 1.1150 levels.

EUR/USD finds support near 20-DMA

Currently, EUR/USD trades modestly flat at 1.1162, trying hard to sustain above 1.1150 barrier. The main currency pair is seen consolidating the downside so far this session, as the bears gear up for the next leg lower amid rising demand for the greenback on the back of April Fed hike expectations.

Markets have under-priced two Fed rate hikes this year, with the next being as early as in April, making Fed/ECB monetary policy divergence more pronounced. While the recent upward revision of the US economic growth for the fourth quarter further added to the ongoing USD strength. Meanwhile, the US dollar index jumps 0.22% at 96.38 slightly off weekly highs reached at 96.42 in early Asia.

Moving on, this week holds crucial data from both continents, with the more influential US payrolls data due on Friday, while the Euro zone CPI figures are lined up for release on Thursday. Besides, Fed Yellen’s speech scheduled on Tuesday will also remain in spotlight.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1187/1.1200 (1h 100-SMA/ round number). A break beyond the last, doors will open for a test of 1.1216/24 (10-DMA/ Mar 23 High). On the flip side, the immediate support is placed at 1.1100 (psychological levels) below which at 1.1088 (50-DMA) could be tested.

(Market News Provided by FXstreet)

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