Tuesday, November 24, 2015

EUR/USD: Rejected at hourly 50-SMA, drops to NY low

FXStreet (Mumbai) - EUR/USD halted its recovery from below 1.06 handle and reverted to NY low near 1.0620 region in the late-Asian trades, as the greenback reversed losses and peaked into the green against its major peers.

EUR/USD capped below 1.0650

Currently, the EUR/USD pair trades -0.11 lower at 1.0627, languishing near fresh session lows struck at 1.0621 over the last minutes. The main currency pair halted its recovery from below 1.06 handle at hourly 50-SMA - 1.0646, and drifted lower to test NY lows printed at 1.0622.

The US dollar appears to bring a pause to its corrective slide and resume its ongoing bullish momentum, keeping EUR/USD undermined. The euro also remains pressured as markets already price-in a Dec QE expansion/ deposit rate cut by the ECB in a bid to combat deflation, as repeatedly noted by ECB policymakers. While the Fed keeps the Dec rate rise hope alive following Yellen’s response to the open letter by American savers overnight.

Looking ahead, the German Ifo surveys and a slew of ECB officials’ speeches will keep the EUR, GBP traders busy. While US GDP data is expected to hog the limelight in the US session.

EUR/USD Technical Levels

The pair trades above 1.06 handle, with the immediate support seen at 1.0600/1.0593 (round number/ Nov 23 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April lows). While to the upside the next hurdle in sight is located at 1.0646 (daily high/ 1h 50-SMA) and from there to 1.0674 (10-DMA).
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