Monday, November 16, 2015

EUR/USD struggling to fill in Paris terror-led bearish gap

FXStreet (Mumbai) - The EUR/USD pair stalled its recovery near the hourly 10-SMA and consolidates to the downside, with the major lacking momentum as the focus now shifts to the Euro zone final CPI data due later in the session ahead.

EUR/USD capped below 1.0730-35 region

The EUR/USD pair trades -0.47% lower at 1.0722, recovering from 1.0688 lows struck in opening trades. The main currency pair remains heavy as the weekend’s multiple terror attacks on Paris hampered investor confidence in the Euro zone and its growth prospects, while the ECB tries hard to revive growth with its QE program.

The Paris bombings by Islamic terrorists on late Friday left at least 130 people dead, sending shock-waves around the globe as investors remained on the back foot amid looming uncertainties in the 19-nation-bloc.

Looking ahead, markets will continue to absorb the developments around France and now await the European open for further cues ahead of the Euro zone final CPI data due later in the session. While the main event for this week remains the FOMC minutes, which may highlight the growing monetary policy divergence on both sides of Atlantic.

EUR/USD Technical Levels

The pair clings onto 1.07 handle with the next hurdle in sight at 1.0745/53 (Today’s High/ 5-DMA) from there to 1.0792 (1h 200-SMA). While to the downside, the immediate support is seen at 1.0700/1.0688 (Psychological levels/ Today’s Low). Selling pressure will intensify below the last, dragging the pair towards 1.0654 (daily S2).
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