EUR/USD sold-off at 1.1000, drops back to 1.0980

Dhwani Mehta FXStreet

A fresh bid-wave caught the EUR/USD pair at Tokyo-open, and drove the rate back to 1.10 handle, before meeting fresh supply at the last to now trade near 5-DMA.

EUR/USD capped below 1.1000

Currently, EUR/USD is seen defending the bids near 5-DMA, now located at 1.0980, as the major came under renewed selling pressure after the bulls ran into 1.10 resistance

Moreover, the US dollar stalled its downslide and attempts a minor corrective bounce against most of its major rivals, exerting additional downward pressure on the spot.

Focus now remains on the ECB policy decision due tomorrow, with the ECB expected to remain in a wait-and-see mode to assess the impact of its current policy setting. The ECB will also publish new staff forecasts.

In the meantime, markets will look forward to the US housing data and Fed’s Beige book for further hints on the US interest rates outlook.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1000 (daily high). A break beyond the last, doors will open for a test of 1.1050 (psychological levels) and from there to 1.1072 (Oct 12 high). On the flip side, the immediate support is placed at 1.0964 (Oct 17 low) below which 1.0950 (multi-month lows) and 1.0900 (round figure) could be tested.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Slightly Bullish	Neutral	Low
1H	Strongly Bearish	Neutral	Low
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	High
1W	Strongly Bearish	Neutral	Low
Updated Oct 18, 04:15 GMT

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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