EUR USD waits for new motivation
11/22/2016 9:23:31 AM
Having faced rejection at 1.0652 at Tokyo-open, the EUR/USD pair floated lower to now trade around a flat-line near the lower bound of 1.0610 handle.
Currently, EUR/USD trades almost unmoved at 1.0628, testing fresh session lows posted last minutes at 1.0625. The main currency pair’s overnight recovery mode from below 1.06 handle lost legs at the mid-point of the last, sending the rate back towards 5-DMA placed at 1.0612, as prevalent risk-on market profile decreases demand for the funding currency EUR.
While any recovery effort stays limited in EUR/USD, as the USD wipes-out losses and now looks to continue its upbeat momentum across the board, following a minor-recovery seen in the treasury yields. While ECB Draghi’s repetition that he is ready to perform more incentive measures whenever required, is also likely to keep a lid on the prices.
In technical view, the pair finds the immediate persistence 1.0647. A break beyond the last, doors will open for a test of 1.0685 and from there to 1.0705. On the other hand, the immediate support is located at 1.0610 below which 1.0565 and 1.0555 could be tested.