EUR/USD Storms Through 1.1200 ahead of ECB

EUR/USD Storms Through 1.1200 ahead of ECB

2 June 2016, 05:44
Roberto Jacobs
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EUR/USD Storms Through 1.1200 ahead of ECB

The EUR/USD pace consolidated the overnight rally and now pierces through the 1.1200 barrier amid fresh selling seen in the greenback against its major peers.

EUR/USD takes-out 100-DMA at 1.1207

Currently, EUR/USD trades 0.21% higher at fresh five-day highs of 1.1214, finally advancing through 1.12 handle. The main currency pair gathered significant pace over the last few trading hours and accelerated to the upside beyond 1.12 barrier as the bulls received fresh impetus from intensifying risk-off trades amid tumbling Japanese stocks, boosting the funding currency EUR. Meanwhile, the USD index slides -0.21% to trade near fresh session lows struck at 95.19 levels.

Moreover, markets resort to repositioning heading into the ECB policy decision due later today and hence, unwound short positions after the major fell to fresh eleven-week troughs earlier this week. In the day ahead, markets await the outcome of the ECB interest rate decision, with no change expected in the monetary policy settings, although Draghi’s presser will hold the key, in order to gauge next direction in the euro.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1226/50 (20-DMA/ psychological levels). A break beyond the last, doors will open for a test of 1.1300/09 (round number/ 50-DMA) On the flip side, the immediate support is placed at 1.1159/54 (10 & 5-DMA) below which at 1.1099 (200-DMA) could be tested.


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