26 Mar 2015
EUR/USD retreats to 1.1030
FXStreet (Mumbai) - EUR/USD extends its upward trajectory in the mid-European session, as a broad-based dollar setback hit currency markets as the Middle East military conflict boosts risk-off sentiments.
EUR/USD deflates from 1.1049
The EUR/USD trades higher by 0.53% at 1.1028 levels, retreating from fresh 3-week highs posted at 1.1049 some time ago. EUR/USD extends beyond 1.10 mark and remains well bid as the combination of a dovish Fed, renewed hope that Grexit will be avoided, and softer macro data from the US is driving the euro higher against the US dollar.
European macro figures have been slowly improving in the recent months, while the same can't be said about US macro data, which have been slowly deteriorating.
Moreover, Saudi Arabia's military intervention against rebels in Yemen today contributes to the risk-off market environment, favouring typical risk-free asset classes like gold, treasuries, yen and the euro.
Considering the heavy dollar positioning and a dovish Fed, there might be a short-term rally on the pair, targeting levels around 1.15 beyond a sustained break above 1.10.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1049 (Today’s High) levels, above which gains could be extended to 1.11 levels. On the flip side, support is seen at 1.0960 (Today’s Low) levels, below which it could extend losses to 1.0900 levels.
EUR/USD deflates from 1.1049
The EUR/USD trades higher by 0.53% at 1.1028 levels, retreating from fresh 3-week highs posted at 1.1049 some time ago. EUR/USD extends beyond 1.10 mark and remains well bid as the combination of a dovish Fed, renewed hope that Grexit will be avoided, and softer macro data from the US is driving the euro higher against the US dollar.
European macro figures have been slowly improving in the recent months, while the same can't be said about US macro data, which have been slowly deteriorating.
Moreover, Saudi Arabia's military intervention against rebels in Yemen today contributes to the risk-off market environment, favouring typical risk-free asset classes like gold, treasuries, yen and the euro.
Considering the heavy dollar positioning and a dovish Fed, there might be a short-term rally on the pair, targeting levels around 1.15 beyond a sustained break above 1.10.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1049 (Today’s High) levels, above which gains could be extended to 1.11 levels. On the flip side, support is seen at 1.0960 (Today’s Low) levels, below which it could extend losses to 1.0900 levels.