EUR/USD faces rejection near daily pivot, IFO eyed
|The corrective rally in EUR/USD faltered just shy of daily pivot located at 1.0560, sending the rate back towards daily lows struck at 1.0534 in Asia opening trades.
EUR/USD awaits data, Fedspeaks and FOMC minutes
Currently, the EUR/USD pair remains better bid at 1.0544, although looks exposed to downside risks, as the USD bulls consolidate yesterday’s gains and gather pace for the next push higher, with the FOMC minutes likely to emerge the key catalyst for fresh upside in the buck.
The FOMC Feb meeting minutes may reveal the Committee’s optimism on the US economy, which is likely to back the case for further rate rises this year. However, the Fed minutes may not strongly signal a March rate hike.
The common currency may also remain under pressure on the back of falling Germany treasury yields amid increased safe-haven demand for the bunds, in wake of political concerns surrounding French elections. Further, expectations of deterioration in the German IFO surveys could also keep the euro in the backseat against its American counterpart.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0556/60 (daily high & pivot). A break beyond the last, doors will open for a test of 1.0587 (5-DMA) and from there to 1.0600 (zero figure). On the flip side, the immediate support is placed at 1.0520 (Jan 6 low) below which 1.0500 (psychological levels) and 1.0478 (Jan 5 low) could be tested.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.