16 Dec 2015
EUR/USD ignores EZ PMI, weak European stocks support EUR
FXStreet (Mumbai) - The slide in the EUR/USD pair from the daily high appears to have stalled around 1.0940 on account of the drop in the European stock markets.
Stays above 50-DMA
The spot has managed to hold itself above the 50-DMA at 1.0931 levels amid the drop in the European stocks. The investors have turned cautious ahead of the Fed meeting, where the bank is expected to raise rates for the first time in almost a decade. Consequently, the equities failed to sustain early gains and fell into losses, thereby lending support to the funding currency EUR.
A weaker-than-expected Eurozone manufacturing PMI received little/no attention from the markets, which remains focused on the Fed meeting outcome.
EUR/USD Technical Levels
At 1.0936, the immediate support is seen at 1.0931 (50-DMA), ahead of the major support at 1.0890 (38.2% of 1.1495-1.0517). A break lower would expose 1.0837 (Dec 7 low). On the other hand, a break above the daily high at 1.0959 could see the pair re-test 1.10-1.1006 (50% of 1.1495-1.0517).
Stays above 50-DMA
The spot has managed to hold itself above the 50-DMA at 1.0931 levels amid the drop in the European stocks. The investors have turned cautious ahead of the Fed meeting, where the bank is expected to raise rates for the first time in almost a decade. Consequently, the equities failed to sustain early gains and fell into losses, thereby lending support to the funding currency EUR.
A weaker-than-expected Eurozone manufacturing PMI received little/no attention from the markets, which remains focused on the Fed meeting outcome.
EUR/USD Technical Levels
At 1.0936, the immediate support is seen at 1.0931 (50-DMA), ahead of the major support at 1.0890 (38.2% of 1.1495-1.0517). A break lower would expose 1.0837 (Dec 7 low). On the other hand, a break above the daily high at 1.0959 could see the pair re-test 1.10-1.1006 (50% of 1.1495-1.0517).