FXStreet (Mumbai) - EUR/USD prolongs its post-FOMC recovery for the second day in a row, although failed to break through 1.10 barrier on couple of attempts seen during Asia.
EUR/USD wavers below 5-DMA
The EUR/USD pair trades modestly flat at 1.0981, having found strong support above the daily pivot located at 1.0955. The major remains on the bids and keeps the recovery mode intact as the USD bulls take a backseat following the dismal US economic releases in the last US session.
The advance US GDP estimate showed an expansion of 1.5% in Sept quarter, just as the markets had been expecting, slowing down sharply from a 3.9% rise seen in the second quarter. While the pending home sales index fell 2.3% to 106.8 points in September, completely missing the 1% gain markets had been expecting.
Moreover, the mixed performance seen on the Asian equities also fuels the demand for the safe-havens such as the euro. The Nikkei rallies 1% while Australia’s ASX closed -0.52% lower. While the Shanghai Composite index trades muted below 3,400 levels.
Looking ahead, markets will await the German retail sales data ahead of the Eurozone CPI and employment data due later in the European session. While a batch of crucial US economic news also remains in focus for further momentum.
EUR/USD Technical Levels
The pair faced rejection at 1.10 handle and heads lower towards the immediate the next support located at 1.0955/50 (daily pivot/ psychological levels). Selling pressure will intensify below the last, dragging the pair towards 1.0900 (round number) and below that 1.0844/40 (daily S3/ Aug lows) could be exposed. While to the upside, the immediate resistance is at 1.10 (today’s high/ round number), beyond which 1.1013 (1h 100-SMA) is likely to be attempted.
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