EUR/USD rejected at 1.0980 in Asia on broad based dollar demand


  • EUR/USD remains on the offer amid dollar rally. 
  • The greenback is drawing bids on global funding stress. '
  • Recession fears and ECB's QE program will likely keep the single currency under pressure.

EUR/USD reversed lower from 1.0980 during the Asian trading hours and is now trading in the red near 1.09. 

The bounce from Wednesday's low of 1.0818 ran out of steam, as the haven bid around the dollar strengthened, yielding big gains for the greenback against majors including anti-risk currencies like yen. Commodity dollars, in particular, took a beating with AUD/USD falling by nearly 300 pips to hit the lowest level since 2002. 

Dollar is the king

"If cash is king, then dollar cash is the king of cash," according to FXStreet's Joseph Trevisani. 

The American dollar could continue to gain altitude on global funding stress. After all,  access to dollar liquidity is critical for the smooth functioning of the global financial system. 

Euro, on the other hand, is unlikely to find buyers, on recession fears. Also, the European Central Bank's decision to launch a fresh EUR 750 billion worth of QE program could keep the EUR buyers at bay. 

On the data front, Eurozone's Construction Output for January and the US weekly jobless claims are scheduled for release on Thursday. Traders could also take cues from the Philadelphia Fed Manufacturing Survey for March scheduled for release at 12:30 GMT. 

Technical levels

EUR/USD

Overview
Today last price 1.0897
Today Daily Change -0.0016
Today Daily Change % -0.15
Today daily open 1.0913
 
Trends
Daily SMA20 1.1083
Daily SMA50 1.1038
Daily SMA100 1.1066
Daily SMA200 1.1096
 
Levels
Previous Daily High 1.1045
Previous Daily Low 1.0802
Previous Weekly High 1.1497
Previous Weekly Low 1.1055
Previous Monthly High 1.1089
Previous Monthly Low 1.0778
Daily Fibonacci 38.2% 1.0895
Daily Fibonacci 61.8% 1.0952
Daily Pivot Point S1 1.0795
Daily Pivot Point S2 1.0677
Daily Pivot Point S3 1.0552
Daily Pivot Point R1 1.1038
Daily Pivot Point R2 1.1164
Daily Pivot Point R3 1.1282

 

 

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