Friday, October 23, 2015

EUR/USD: recovers to 1.1120, fresh bids emerged at 200-DMA

FXStreet (Mumbai) - Fresh bids emerged for the EUR/USD pair near 200-DMA, driving the major back above 1.11 barrier in the mid-Asian session, as the bulls are finally offered some respite after Thursday’s carnage.

EUR/USD supported at key 200-DMA located at 1.1078

The EUR/USD pair trades 0.10% higher at fresh session highs of 1.1117, recovering from two-month lows struck at 1.1076 in early Asia. The main currency pair finally halted its recent downslide and stages a modest recovery in mid-Asia and regains 1.11 barrier, rebounding from the solid support placed at 200-DMA.

However, the EUR/USD pair remains pressured as markets continue to speculate Dec QE extension/expansion bets after the ECB Chief Draghi hinted towards further easing later this year at the ECB press conference on Thursday.

Calendar-wise, the set of final manufacturing PMI reports from the Euro zone and Germany will be reported post-European open. While the major will track the sentiment on the equities as traders continue to absorb the ECB hints.

EUR/USD Technical Levels

The pair recovers above 1.11 barrier with the next the immediate resistance at 1.1185 (daily pivot), beyond which 1.1200 (round number) would be tested and from there to 1.1258 (50-DMA). While immediate support in sight is located at 1.1078/76 (200-DMA + Today’s Low), below which 1.1023/1018 (Aug 12 Low + daily S1) could be tested, a breach of the last would expose 1.0850 (August lows) levels.
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