26 Aug 2015
EUR/USD consolidates below 1.1500
FXStreet (Mumbai) - EUR/USD suffers losses in the European session and continues its struggle below 1.15 barrier as the US dollar takes advantage of risk sentiment returning after the PBoC stabilized markets.
EUR/USD strives for 1.15 handle
The EUR/USD pair trades -0.26% lower at 1.1487, facing rejection near 1.1520 levels on every attempt to the upside. Safe-havens such as the euro were hard hit this session as markets preferred the risky assets amid rebound risk sentiment driven by the latest PBOC intervention.
The PBOC reduced the one-year lending rate to 4.6%, and the one-year deposit rate to 1.75%. The central bank also lowered the Reserve Requirement Ratio (RRR) by 0.5%.
However, the losses were capped in the EUR/USD pair as the global financial markets situation still looks fragile with European stocks still suffering losses and denting investors’ sentiment somewhat.
Germany’s benchmark index, the DAX is losing -1.38% at 9988.50 while the Euro Stoxx 50 is also giving away -1.51% to trade at 3169.
Looking ahead, the main currency pair is likely to track USD moves as the New York session hold the much awaited consumer durable goods data from the US which may major impact on the US currency.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1561 (Today’s High), above which gains could be extended to 1.1625 (Aug 25 High) levels. On the flip side, support is seen at 1.1450 (Psychological Levels) below which it could extend losses to 1.1396 (Aug 25 Low) levels.
EUR/USD strives for 1.15 handle
The EUR/USD pair trades -0.26% lower at 1.1487, facing rejection near 1.1520 levels on every attempt to the upside. Safe-havens such as the euro were hard hit this session as markets preferred the risky assets amid rebound risk sentiment driven by the latest PBOC intervention.
The PBOC reduced the one-year lending rate to 4.6%, and the one-year deposit rate to 1.75%. The central bank also lowered the Reserve Requirement Ratio (RRR) by 0.5%.
However, the losses were capped in the EUR/USD pair as the global financial markets situation still looks fragile with European stocks still suffering losses and denting investors’ sentiment somewhat.
Germany’s benchmark index, the DAX is losing -1.38% at 9988.50 while the Euro Stoxx 50 is also giving away -1.51% to trade at 3169.
Looking ahead, the main currency pair is likely to track USD moves as the New York session hold the much awaited consumer durable goods data from the US which may major impact on the US currency.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1561 (Today’s High), above which gains could be extended to 1.1625 (Aug 25 High) levels. On the flip side, support is seen at 1.1450 (Psychological Levels) below which it could extend losses to 1.1396 (Aug 25 Low) levels.