EUR/USD off-lows, but remains below 1.0800
|The EUR/USD pair is seen making minor-recovery attempts from three-day troughs reached at 1.0777 last hours, although sellers continue to lurk at 1.0800 levels, keeping the recovery in check.
The spot remains under pressure on the back of broad based US dollar strength, while positive European indices and higher oil prices keep the market sentiment buoyed and hence, weigh somewhat on the funding currency euro.
However, the losses remain restricted, as the shorter-duration treasury yields turn negative, which could eventually drag the buck lower. Looking ahead, focus remains on the Article 50 trigger, which is expected to have a significant impact on the pound and a ‘rub-off’ effect on the EUR.
Meanwhile, the major will also take cues from the US pending home sales and FOMC member Evans speech due on the cards later today.
EUR/USD Technical Levels
Karen Jones, Analyst at Commerzbank explains, “EUR/USD’s near term outlook is neutralising: The cross has eased lower having failed to close above the 1.0877 200 day moving average. The market stays immediately bid above 1.0798 – and we remain unable to rule out a challenge of the 1.0978/1.1000 region. This area is where the 100% Fibonacci extension of the January-to-February advance, projected from the February low, coincides with the 50% retracement of the move down from the May peak. Please note that the intraday Elliott wave counts have become more negative and suggesting that rallies will struggle circa 1.0835 and we suspect the chart is neutralising.”
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