EUR/USD Rejected Once Again at 1.1200, Drops to 1.1180

EUR/USD Rejected Once Again at 1.1200, Drops to 1.1180

27 May 2016, 09:56
Roberto Jacobs
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EUR/USD Rejected Once Again at 1.1200, Drops to 1.1180

EUR/USD reached 1.12 handle in the last hour, although failed once again at the last and drifted lower, dropping further below 100-DMA.

EUR/USD making higher highs on intraday charts

Currently, EUR/USD trades -0.12% lower at fresh session lows of 1.1175, having fought hard to take-out 1.1200 level. The main currency pair extends its struggle to rise beyond 1.12 handle as the bears are seen guarding the last amid resurgence of demand for the US dollar, despite poor risk conditions.

In the day ahead, the broader market sentiment will continue to drive the price-action surrounding the EUR/USD pair. However, risk remains to the downside for the major as markets expect the US GDP revision to report stronger figures for Q1 2016, which could further fuel Fed rate hike as early as next month. While Fed Yellen’s speech will also remain in the spotlight, especially after a string of hawkish Fedspeaks delivered so far this week.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance at 1.1200 (round number). A break beyond the last, doors will open for a test of 1.1250 (Daily R2/ psychological levels). On the flip side, the immediate support is placed at 1.1100 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.


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