EUR/USD fails to extend the break above 5-DMA

Dhwani Mehta FXStreet

The EUR/USD pair finally broke the consolidative mode to the upside in the European session, although lacked follow-through as investors await ECB Draghi’s speech for fresh direction.

EUR/USD awaits US data, Draghi

Currently, EUR/USD remains better bid around 1.0885 levels, easing-off session highs reached at 1.0894 some minutes ago. The main currency pair is seen struggling hard to extend the bullish break and resumes its side-ways momentum near the upper bound of today’s trading range.

The gains remain capped in the major amid ongoing bullish tone seen behind the greenback and positive European equities, which tarnish the funding currency status of the common currency somewhat. Meanwhile, the USD index once again reverses a spike to 98.81 levels and now trades around 98.65, almost unchanged on the day.

On the data-front, the Ifo published its business sentiment surveys, with the headline German Ifo business climate having surprised positively, coming in at 110.5 points in Oct versus 109.5 booked in Sept. Focus now remains on the US consumer confidence and ECB Draghi’s speech due later in the American session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0894 (5-DMA/ daily high). A break beyond the last, doors will open for a test of 1.0936 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0850 (psychological levels) below which 1.0820 (March lows) and 1.0800 (round figure) could be tested.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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