EUR/USD rejected near 100-DMA, eyes daily lows?

Dhwani Mehta FXStreet

The EUR/USD pair failed to sustain a minor-recovery seen in early Asia, and now drifts lower as we head towards the European morning bells.

EUR/USD: Next support near 1.0650

Currently, the spot peeks into the red zone at 1.0676, having faced strong offers near 100-DMA located at 1.0696. The main currency pair closely tracks the USD price-action, with uncertainty around US politics and Fed rate hike prospects weighing on the US treasury, therefore keeps a lid on any USD correction across the board.

While EUR/USD remains under pressure also on account of poor economic fundamentals from the Euro zone, particularly the latest downbeat German industrial production data. Additionally, fragile state of the Eurozone politics, in light of the French and German elections, keeps the shared currency exposed to downside risks.

Nothing of note for the major in terms of macro data, and hence, the prices will remain at the mercy of the USD dynamics.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0696/1.0700 (100-DMA/ zero figure). A break beyond the last, doors will open for a test of 1.0723/35/41 (20, 5 & 10-DMA) and from there to 1.0790 (daily R2). On the flip side, the immediate support is placed at 1.0655 (Jan 26 low) below which 1.0617 (Jan 30 low) and 1.0592 (50-DMA) could be tested.

Sell 62%

Buy 38%

Avg Sell Price 1.0777

Avg Buy Price 1.0705

Liquidity Distribution

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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