24 Mar 2015
EUR/USD testing lows ahead of 1.09
FXStreet (Mumbai) - EUR/USD reversed overnight gains and fell deeper in to red during the Asian session, largely on the back of profit–taking after the recent Draghi induced rally as traders brace for PMI readings across the Euro area economies due later in the day.
EUR/USD drops from 1.0951
The EUR/USD now trades lower by -0.32% at 1.0911 levels, bouncing-off day’s high at 1.0951 levels. EUR/USD erased all gains and edged lower mainly driven by a short-covering rally as the traders resorted to lock-in gains after the upsurge seen in the previous session. Also, a broad based US dollar bounce-back weighed on the major, dragging the major lower towards 1.09 handle.
EUR/USD was heavily bid in the US last session and was pushed above 1.09 handle after ECB President Mario Draghi’s more optimistic growth forecast in the euro area, stating that the fresh stimulus, along with the depreciating euro and falling crude oil prices, are expected to help with the economic recovery in the euro area.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.0835 (Today’s High) levels, above which gains could be extended to 1.0883 (March 20 High) levels. On the flip side, support is seen at 1.0784 (Today’s Low) levels, below which it could extend losses to 1.0700 levels.
EUR/USD drops from 1.0951
The EUR/USD now trades lower by -0.32% at 1.0911 levels, bouncing-off day’s high at 1.0951 levels. EUR/USD erased all gains and edged lower mainly driven by a short-covering rally as the traders resorted to lock-in gains after the upsurge seen in the previous session. Also, a broad based US dollar bounce-back weighed on the major, dragging the major lower towards 1.09 handle.
EUR/USD was heavily bid in the US last session and was pushed above 1.09 handle after ECB President Mario Draghi’s more optimistic growth forecast in the euro area, stating that the fresh stimulus, along with the depreciating euro and falling crude oil prices, are expected to help with the economic recovery in the euro area.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.0835 (Today’s High) levels, above which gains could be extended to 1.0883 (March 20 High) levels. On the flip side, support is seen at 1.0784 (Today’s Low) levels, below which it could extend losses to 1.0700 levels.