Tuesday, November 17, 2015

EUR/USD hovers around 7-month lows, near 1.0660

FXStreet (Mumbai) - The shared currency extends its downside momentum against the US dollar for the fourth straight on Monday, now pushing EUR/USD to fresh seven-month lows.

EUR/USD capped below 1.07 handle

The EUR/USD pair trades -0.28% lower near seven-month lows struck at 1.0656 last minutes. The main currency pair remains pressured as markets remain wary over the Euro zone economic outlook after the weekend’s Paris terror attacks and believe that ECB will have to unveil further stimulus next month in order to spur economic growth and restore investor confidence.

On the other hand, increased Dec Fed rate hike bets continue to boosts the USD bulls, which also heavily weigh on the EUR/USD pair. Moreover, improved risk-conditions on the back of rebounding Asian equities also dulled the safe-haven status of the euro.

Looking ahead, markets now await the German ZEW economic sentiment, which is expected to edge sharply higher in Oct. Also, the US CPI and industrial production data will be closely eyed for fresh light on the Fed interest rates outlook.

EUR/USD Technical Levels

The pair trades below 1.07 handle with the immediate support seen at 1.0656/50 (Daily S1/ Psychological levels). Selling pressure will intensify below the last, dragging the pair towards 1.0600 (round number). While to upside, the next hurdle in sight is located at 1.0691/1.0700 (Today’s High/ round number) from there to 1.0729/33 (5/ 10-DMA).
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