Thursday, November 19, 2015

EUR/USD pierces through 1.0700, tests 1h 200-SMA

FXStreet (Mumbai) - The shared currency keeps pushing higher versus its American counterpart heading into mid-Asia, now extending the post-FOMC upbeat momentum beyond 1.07 barrier.

FOMC minutes disappointed USD bulls

Currently, the EUR/USD pair trades 0.48% higher at fresh session highs of 1.0716, finally conquering 1.07 handle. The main currency pair takes out 1.07 levels after the continued attempt for the third straight session on Thursday, as the renewed sell-off in the US dollar across supports the persisting bullish momentum.

The US dollar corrected sharply from fresh seven-month tops just shy of 100 against its six major peers this session, as the Asian traders shrug off the latest Fed minutes which failed to provide fresh hints on the Dec rate hike options and rather turned out to be eventless.

The FOMC minutes showed that most Fed officials were ready for a lift-off next month and noted that the economic conditions “could well be met by the time of the next meeting.”

Looking ahead, the Fed minutes will continue to weigh on investors’ minds ahead of the ECB minutes due to be published later today. While a set of US economic data will be also tracked for further momentum.

EUR/USD Technical Levels

The pair rebounds higher towards 1.07 handle, with the next hurdle in sight is located at 1.0722 (1h 200-SMA) and from there to 1.0780 (Nov 16 High) . While the immediate support is seen at 1.0674/71 (5-DMA/ Today’s Low). Selling pressure will intensify below the last, dragging the pair towards 1.0656 (1h 50-SMA).
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