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22 Apr 2016
EUR/USD better bid in Tokyo, flirts with 1.1300
The EUR/USD pair keeps its overnight recovery mode intact in the Asian morning, now catching fresh bid-wave as the bulls look to reclaim 1.13 handle amid negative Asian equities.
EUR/USD trades below 10-DMA at 1.1306
Currently, EUR/USD trades 0.09% higher at fresh session highs of 1.1299, heading for a test of 20-DMA resistance at 1.1350 beyond a break of 1.13 barrier. The euro-dollar pair is seen struggling to extend its recovery from post-ECB lows struck at 1.1271 back onto 1.13 handle, although the sentiment around the major remains underpinned on the back of lower Asian equities, which boosts the safe-haven appeal of the euro.
More so, the USD bulls appear to take a breather from the previous surge, with the greenback now retreating against its major peers, which also offers support to the EUR/USD pair. With the ECB now out of the way, the major eyes a raft of flash manufacturing and services PMI reports from across the euro area economies for fresh direction on the prices.
As widely expected, the ECB kept its monetary policy steady at its policy review meeting on Thursday, while Draghi kept the optimistic view on the economic outlook; he defended the central bank’s independence and also acknowledged that risks to the region’s economic growth remains tilted to the downside.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1350 (20-DMA/ round number). A break beyond the last, doors will open for a test of 1.1393/1.1400 (Apr 13 High/ psychological levels). On the flip side, the immediate support is placed at 1.1271/64 (Apr 21 & 13 Low) below which at 1.1206 (50-DMA) could be tested.
EUR/USD trades below 10-DMA at 1.1306
Currently, EUR/USD trades 0.09% higher at fresh session highs of 1.1299, heading for a test of 20-DMA resistance at 1.1350 beyond a break of 1.13 barrier. The euro-dollar pair is seen struggling to extend its recovery from post-ECB lows struck at 1.1271 back onto 1.13 handle, although the sentiment around the major remains underpinned on the back of lower Asian equities, which boosts the safe-haven appeal of the euro.
More so, the USD bulls appear to take a breather from the previous surge, with the greenback now retreating against its major peers, which also offers support to the EUR/USD pair. With the ECB now out of the way, the major eyes a raft of flash manufacturing and services PMI reports from across the euro area economies for fresh direction on the prices.
As widely expected, the ECB kept its monetary policy steady at its policy review meeting on Thursday, while Draghi kept the optimistic view on the economic outlook; he defended the central bank’s independence and also acknowledged that risks to the region’s economic growth remains tilted to the downside.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1350 (20-DMA/ round number). A break beyond the last, doors will open for a test of 1.1393/1.1400 (Apr 13 High/ psychological levels). On the flip side, the immediate support is placed at 1.1271/64 (Apr 21 & 13 Low) below which at 1.1206 (50-DMA) could be tested.