8 Mar 2016
EUR/USD finds resistance below 1.1060 and retreats
EUR/USD gained momentum after Wall Street opening bell and climbed to 1.1058, hitting a fresh 1-week high. The pair lost strength below 1.1060 and pulled back as main stock indexes in the US moved off session lows.
It was trading at 1.1035/40 less than 30 pips above yesterday’s closing price; moving slowly away from daily highs but still headed toward the fifth daily gain in a row ahead of the European Central Bank meeting on Thursday.
EUR/USD levels to watch
“The euro has been sold from $1.1375 on February 11 to $1.0825 on March 2. Remembering the disappointment coupled with the sell the rumor buy the fact type of activity at the December ECB meeting, it appears that many have cut exposures, which reinforces the technical significance of the $1.08 area”, said analysts from Brown Brothers Harriman.
They note that EUR/USD has not traded above its 20-day moving average since February 22. “It comes in today near $1.1060. Above there, the next retracement objective is near $1.1100 and then $1.1160.”
It was trading at 1.1035/40 less than 30 pips above yesterday’s closing price; moving slowly away from daily highs but still headed toward the fifth daily gain in a row ahead of the European Central Bank meeting on Thursday.
EUR/USD levels to watch
“The euro has been sold from $1.1375 on February 11 to $1.0825 on March 2. Remembering the disappointment coupled with the sell the rumor buy the fact type of activity at the December ECB meeting, it appears that many have cut exposures, which reinforces the technical significance of the $1.08 area”, said analysts from Brown Brothers Harriman.
They note that EUR/USD has not traded above its 20-day moving average since February 22. “It comes in today near $1.1060. Above there, the next retracement objective is near $1.1100 and then $1.1160.”