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29 Jul 2015
EUR/USD extends recovery towards 1.1100
FXStreet (Mumbai) - The EUR/USD pair reversed a part of yesterday’s slide and edged higher in the mid-Asian trades, largely as the US dollar corrected lower after the recent strength. While the European currency also bounced versus its American counterpart as traders continued to digest the unexpected dive in the US consumer confidence, awaiting the outcome of the two-day Fed meeting due later in the US session.
EUR/USD rises from 1.1064
The EUR/USD pair trades 0.19% higher at fresh session highs of 1.1084, heading towards 1.1100 levels. EUR/USD stands resilient despite the divergent monetary policies outlooks between the Fed and the ECB favouring a further decline, as the demand for euro as a funding currency for carry trade operations has been on the rise.
Moreover, broad based US dollar retreat after yesterday’s upsurge also remains euro supportive as traders weigh disappointing consumer confidence data ahead of the key FOMC decision.
Looking ahead, markets now eye US pending home sales data due later today for fresh cues on further USD moves ahead of the much awaited FOMC decision. Traders, however, will search for any indications of the anticipated rate hike later in 2015.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1100 levels, above which gains could be extended to 1.1125 (July 9 High) levels. On the flip side, support is seen at 1.1064 (Today’s Low) below which it could extend losses to 1.1020 (July 28 Low) levels.
EUR/USD rises from 1.1064
The EUR/USD pair trades 0.19% higher at fresh session highs of 1.1084, heading towards 1.1100 levels. EUR/USD stands resilient despite the divergent monetary policies outlooks between the Fed and the ECB favouring a further decline, as the demand for euro as a funding currency for carry trade operations has been on the rise.
Moreover, broad based US dollar retreat after yesterday’s upsurge also remains euro supportive as traders weigh disappointing consumer confidence data ahead of the key FOMC decision.
Looking ahead, markets now eye US pending home sales data due later today for fresh cues on further USD moves ahead of the much awaited FOMC decision. Traders, however, will search for any indications of the anticipated rate hike later in 2015.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1100 levels, above which gains could be extended to 1.1125 (July 9 High) levels. On the flip side, support is seen at 1.1064 (Today’s Low) below which it could extend losses to 1.1020 (July 28 Low) levels.