3 May 2016
EUR/USD: Bulls conquer 1.1600, strongest since Aug 2015
The bulls appear unstoppable post-European open, taking the EUR/USD pair deeper into the positive territory in a bid to reclaim 1.16 handle amid broad based US dollar sell-off.
EUR/USD: Extends higher for 7th day in a row
Currently, EUR/USD trades +0.63% higher at fresh nine-month peaks of 1.1608, having found strong bids above daily R1 at 1.1557. The offered tone behind the US dollar accentuated last hours, further boosting the bullish momentum in the EUR/USD pair on the back of uncertainty over the Fed interest rates outlook for this year. The USD index now sinks -0.66% to fresh sixteen-month lows of 91.98.
Moreover, a renewed bout of buying interest in the EUR/USD pair can be also explained by deteriorating risk conditions as the European stocks dive in the red zone. Germany’s DAX slips -1.47%, the UK’s FTSE drops -0.70%, while the pan-European benchmark index, the Euro Stoxx 50 dives -1.15%.
Calendar-wise, nothing of note for the major expect for the Eurozone PPI numbers, while the US docket data-dry for today. While Fed official Mester’s speech due later in NA session will be closely heard for fresh hints on the Fed rate hike prospects.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1646/50 (daily R3/ psychological levels). A break beyond the last, doors will open for a test of 1.1700 (psychological levels). On the flip side, the immediate support is placed at 1.1524/21 (1h 20-SMA/ daily low) below which at 1.1503/00 (daily pivot/ key level) could be tested.
EUR/USD: Extends higher for 7th day in a row
Currently, EUR/USD trades +0.63% higher at fresh nine-month peaks of 1.1608, having found strong bids above daily R1 at 1.1557. The offered tone behind the US dollar accentuated last hours, further boosting the bullish momentum in the EUR/USD pair on the back of uncertainty over the Fed interest rates outlook for this year. The USD index now sinks -0.66% to fresh sixteen-month lows of 91.98.
Moreover, a renewed bout of buying interest in the EUR/USD pair can be also explained by deteriorating risk conditions as the European stocks dive in the red zone. Germany’s DAX slips -1.47%, the UK’s FTSE drops -0.70%, while the pan-European benchmark index, the Euro Stoxx 50 dives -1.15%.
Calendar-wise, nothing of note for the major expect for the Eurozone PPI numbers, while the US docket data-dry for today. While Fed official Mester’s speech due later in NA session will be closely heard for fresh hints on the Fed rate hike prospects.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1646/50 (daily R3/ psychological levels). A break beyond the last, doors will open for a test of 1.1700 (psychological levels). On the flip side, the immediate support is placed at 1.1524/21 (1h 20-SMA/ daily low) below which at 1.1503/00 (daily pivot/ key level) could be tested.