11 Mar 2016
EUR/USD slips as European stock futures rise
The EUR/USD slipped lower to 1.1152 as the major European stock futures indicate the indices are likely to open strong following Thursday’s drop.
Trades below 23.6% Fibo
Having failed to sustain above 1.1173 (23.6% of 1.0517-1.1376), the spot is trading on a weak footing. The pair’s sharp rally yesterday caught many by surprise, especially since the ECB delivered the goods. Equity markets dipped as well, adding to the bullish tone around EUR.
However, European desks are offering EUR today as yesterday’s move might be an overreaction. The economic calendar is thin; hence the doors are open for profit taking after Thursday’s sharp rally.
EUR/USD Technical Levels
The immediate support is seen at 1.1115 (50% of 1.1714-1.0517), under which the pair could drop to 1.1086 (Feb 8 low). If taken out, the spot could test 1.1045 (200-DMA). On the other hand, a break above 1.1173 (23.6% of 1.0517-1.1376) could see the pair re-test 1.1218 (previous day’s high). A break higher would expose 1.1296 (23.6% of May 2014 high-Mar 2015 low).
Trades below 23.6% Fibo
Having failed to sustain above 1.1173 (23.6% of 1.0517-1.1376), the spot is trading on a weak footing. The pair’s sharp rally yesterday caught many by surprise, especially since the ECB delivered the goods. Equity markets dipped as well, adding to the bullish tone around EUR.
However, European desks are offering EUR today as yesterday’s move might be an overreaction. The economic calendar is thin; hence the doors are open for profit taking after Thursday’s sharp rally.
EUR/USD Technical Levels
The immediate support is seen at 1.1115 (50% of 1.1714-1.0517), under which the pair could drop to 1.1086 (Feb 8 low). If taken out, the spot could test 1.1045 (200-DMA). On the other hand, a break above 1.1173 (23.6% of 1.0517-1.1376) could see the pair re-test 1.1218 (previous day’s high). A break higher would expose 1.1296 (23.6% of May 2014 high-Mar 2015 low).