Monday, October 5, 2015

EUR/USD supported above hourly 200-MA, EZ PMIs eyed

FXStreet (Mumbai) - The EUR/USD pair bounced-off a dip to 1.12 barrier in the overnight trades and keeps its post-NFP bids intact as we progress towards the European open.

EUR/USD faces stiff resistance at 20-DMA

The EUR/USD pair trades 0.21% higher at 1.1235, gradually extending its upward moves towards 1.13 handle. The major sold-off the NFP-led spike near 1.1320 region and corrected lower at Asia open, only to bounce-off strong support at hourly 200-MA and 50-MA confluence at 1.1200 levels, and now eyes a retest of 20-DMA located at 1.1245.

The EUR/USD pair remains well bid as the greenback continues to remain undermined by poor US jobs data, which poured cold water over the 2015 Fed rate hike bets. The US NFP report on Friday showed 142k job additions against 201k expectations.

Later in the day, attention turns towards a raft of final services PMI readings from the Euro zone while a set of US services PMI will also influence the pair.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1245 (20-DMA), above which gains could be extended to 1.1300 levels. On the flip side, support is seen at 1.1200 (hourly 200-MA) which it could extend losses to 1.1149 (Oct 2 Low) levels.
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