EUR/USD: Bears in control, flirting with 1.10 handle

Omkar Godbole FXStreet Contributor

EUR/USD is flirting with 1.10 handle in Asia as calls of referendum across Eurozone after Brexit is keeping the EUR on the back foot.

Rejected at 50% Fibo

Pair failed to sustain above 1.1066 (50% of 1.0517-1.1616) in early Asia and made its way back to 1.10 levels. The common currency is feeling the heat of Brexit, which as per Chancellor Merkel is a ‘watershed for Europe’. Moreover, quite a few Eurozone nations have called for an EU referendum after Britons voted in favor of ‘exit’.

The political uncertainty is seeing money flow into safe haven treasuries, due to which the greenback is having a good time out there. With no major data due in Europe, the political news flow from Europe is likely to guide the pair.

EUR/USD Technical Levels

At the time of writing, the pair was trading around 1.10 handle. Acceptance below 1.10 would open doors for 1.0937 (61.8% of 1.0517-1.1616) and 1.09 levels. On the higher side, 1.1066 (50% of 1.0517-1.1616) would shift risk in favor of a rise to 1.11 (200-DMA). Next resistance is seen at 1.1133 (May 24 low).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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