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9 Sep 2015
EUR/USD capped ahead of key 200 DMA
FXStreet (Guatemala) - EUR/USD has been rejected heavily at the 200 SMA on the hourly chart and above the psychological 1.12 handle.
EUR/USD scored a high of 1.1217 in a determined recovery, the highest level since last week's bearish performance from 1.1236 to 1.1089 on the drop. While some of the play in the single currency of late has been about the unwinding of the EUR/USD carry trade as stock markets were falling, at this stage of the game, it is getting harder to understand the fluctuations in the price without there being one main theme to track. The stock markets in Europe are performing better again and EUR/USD has recently been correlated to this once again.
However, the ECB is very dovish at the moment and rallies in EUR/USD at some points have been met with strong supply while we await the FOMC and rate decision on the 17th of the month for the next catalyst to really determine the trend for the remaining trading periods for this year.
EUR/USD key levels
For the downside, the levels come with the 50 SMA on the hourly chart at 1.1170, then the next key focus will be with the 55 day ma at 1.1094. The cloud base is at 1.1021 today and a break of this could open up tests of the 1.09 handle. the 31st Aug high is an upside target through the 200 DMA.
EUR/USD scored a high of 1.1217 in a determined recovery, the highest level since last week's bearish performance from 1.1236 to 1.1089 on the drop. While some of the play in the single currency of late has been about the unwinding of the EUR/USD carry trade as stock markets were falling, at this stage of the game, it is getting harder to understand the fluctuations in the price without there being one main theme to track. The stock markets in Europe are performing better again and EUR/USD has recently been correlated to this once again.
However, the ECB is very dovish at the moment and rallies in EUR/USD at some points have been met with strong supply while we await the FOMC and rate decision on the 17th of the month for the next catalyst to really determine the trend for the remaining trading periods for this year.
EUR/USD key levels
For the downside, the levels come with the 50 SMA on the hourly chart at 1.1170, then the next key focus will be with the 55 day ma at 1.1094. The cloud base is at 1.1021 today and a break of this could open up tests of the 1.09 handle. the 31st Aug high is an upside target through the 200 DMA.