Wednesday, September 23, 2015

EUR/USD steadies around 1.1130, China-led risk-off ignored

FXStreet (Mumbai) - EUR/USD fades gains and now trades modestly flat in the late-Asian session, bouncing-off 1.1105 lows after the euro received some impetus from the Chinese data-led risk-off moods.

EUR/USD supported at 1.1105

The EUR/USD pair trades almost unchanged at 1.1129, retreating from session highs posted at 1.1141. The main currency pair found good support at 1.11 barrier and managed to swing back higher somewhat, with the euro garnering some strength backed by worsening risk conditions following the release of weak China PMI survey.

However, the spike to the upside was short-lived as the shared currency erases most gains versus the US dollar on persisting monetary policy divergence between both continents.

The recent comments from Fed officials Bullard and Lockhart, citing rate hike still alive this year, boosted the greenback across the board. While, the euro remains pressured amid hints on further easing by ECB policy makers, especially by the ECB Chief Draghi at the Sept ECB monetary policy meeting.

Meanwhile, focus now shifts towards the euro zone PMIs, which are expected to slightly decrease from the previous levels. The ECB's Mario Draghi will testify before the European Parliament's Economic and Monetary Committee in Brussels.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1181 (Sept 4 High), above which gains could be extended to 1.1209 (Sept 22 High) levels. On the flip side, support is seen at 1.1088 (Sept 4 Low) below which it could extend losses to 1.1057 (Aug 17 Low) levels.
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