EUR/USD – Attempting Break Above Key Fibo, Strong Yen Weighs

EUR/USD – Attempting Break Above Key Fibo, Strong Yen Weighs

EUR/USD is having a tough time taking out hurdle at 1.1418 (23.6% of Mar 2015 low-Aug 2015 high) amid strength in Yen and resulting weakness in EUR/JPY cross.

Range trading continues

Pair is looking to extend the week long range of 1.1327-1.1454 levels. The bird is caught between EUR/GBP strength and EUR/JPY weakness. Meanwhile, falling Fed rate hike bets is also ensuring the downside remains protected.

On the other hand, anti intervention lobby is gaining strength in Japan, hence a technical recovery in USD/JPY is struggling to gather pace. Thus, the spot is failing to cut through the key Fibo hurdle.

The economic calendar in Europe is empty; hence the pair remains at the mercy of action in EUR/JPY. Later in the US session, Fed speak could influence the pair.

EUR/USD Technical Levels

The pair is trading around 1.1410 levels. A break above immediate hurdle at 1.1418 (23.6% of Mar 2015 low-Aug 2015 high) would expose the upper end of the week long range – 1.1454. A violation there could see prices test supply at 1.15 levels. On the other hand, a break below 1.14 would shift risk in favor of a drop to 1.1376 (Feb 11 low). Next major support is seen at 1.1327 (lower end of the week long range).

(Market News Provided by FXstreet)