EUR/USD Remains Capped Below 1.1300, Indifferent to Risk-Off
EUR/USD Remains Capped Below 1.1300, Indifferent to Risk-Off
A classic risk-off theme dominates Asia, although the EUR/USD pair fails to benefit from increased safe-haven demand and trades muted below 1.13 handle.
EUR/USD rejection near 1.1310
Currently,
EUR/USD trades almost unchanged at 1.1285, having found strong support
ahead of 50-DMA located at 1.1272. The main currency pair trades
directionless in a 30-pips slim range, with bulls little affected by the
persisting risk-aversion following the oil price collapse on no Doha
deal reached last weekend.
The EUR/USD pair reverses a spike to
1.1307 highs and now consolidates in the lower bound of today’s trading
range as investors step into the ECB week on a cautious note, with the
central bank seemingly less worried over the recent rise in the euro
against its American counterpart.
In the week ahead, besides the
crucial ECB monetary policy decision, markets also look forward to the
ZEW surveys and the housing data from the US for further momentum on the
major. While today’s macro calendar remains fairly light and hence, the
focus will remain on FOMC member Dudley’s speech scheduled later in the
NY session.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1305/07 (Daily R1 & high). A break beyond the last, doors will open for a test of 1.1339/51 (10-DMA/ 1h 200-SMA). On the flip side, the immediate support is placed at 1.1232 (2-week low) below which at 1.1200/1.1187 (psychological levels/ 50-DMA) could be tested.
