EURUSD – off lows, but well below 1.11 handle
Investors Buz – Global Markets Roundup
Offered tone around EURUSD pair stalled at 1.0952 in Asia, opening doors for a modest recovery, although the spot remains well below 1.11 handle.
Eyes German IFO
EUR traders await German IFO release, which are likely to show business climate, current assessment and expectations index weakened slightly in July. The data represents post Brexit vote period hence carries additional weight. In UK, the preliminary PMI indices showed worsening of the sentiment in July.
Thus, there is a risk the IFO release may drop more than expected. Apart from the data, the spot also remains at the mercy of the action in the treasury yields, given the markets fear the Fed may up the ante on rate hike talk later this week.
EUR/USD Technical Levels
The spot currently trades at 1.0965. Immediate resistance at 1.10 (5-DMA) if breached would open doors for 1.1036 (10-DMA). A violation there could yield 1.1079 (200-DMA). On the other hand, a breakdown of support at 1.0940 (61.8% of 1.0463-1.1714) could expose 1.09, under which losses could be extended to 1.0825 (Mar 2 low).Click here for reuse options!
Copyright 2016 Investors Buz