22 Jul 2015
EUR/USD languishing near lows around 1.0930
FXStreet (Mumbai) - The shared currency gave back gains and trades muted versus the American dollar in the early European trades, keeping EUR/USD near session lows. The main currency pair halted its rebound and treads water heading in to a yet another data-dry European trading session as the focus now shifts to US data for further direction.
EUR/USD drops from 1.0960
The EUR/USD pair trades flat at 1.0935, retracing from 1.0960 highs reached in early Asia. The major shaved-off gains and remains vulnerable as the USD bulls seems to have regained lost ground after Tuesday’s 1% drop largely on correction after the recent Fed rate-hike fuelled rally to three-month highs.
Moreover, divergence in the monetary policies of the ECB and Fed remains in focus while reports from Bloomberg that China may dump euros in order to boost its USD reserves may also add to further bearishness in the EUR/USD pair.
Looking ahead, existing home sales are due in the US on Wednesday, as markets now shift their focus towards a raft of flash manufacturing and manufacturing PMIs due for release on Friday amid a data-light European calendar for the week ahead.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.0960 (Today’s High) levels, above which gains could be extended to 1.1000 levels. On the flip side, support is seen at 1.0854 (July 16 Low) below which it could extend losses to 1.0826 (July 17 Low) levels.
EUR/USD drops from 1.0960
The EUR/USD pair trades flat at 1.0935, retracing from 1.0960 highs reached in early Asia. The major shaved-off gains and remains vulnerable as the USD bulls seems to have regained lost ground after Tuesday’s 1% drop largely on correction after the recent Fed rate-hike fuelled rally to three-month highs.
Moreover, divergence in the monetary policies of the ECB and Fed remains in focus while reports from Bloomberg that China may dump euros in order to boost its USD reserves may also add to further bearishness in the EUR/USD pair.
Looking ahead, existing home sales are due in the US on Wednesday, as markets now shift their focus towards a raft of flash manufacturing and manufacturing PMIs due for release on Friday amid a data-light European calendar for the week ahead.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.0960 (Today’s High) levels, above which gains could be extended to 1.1000 levels. On the flip side, support is seen at 1.0854 (July 16 Low) below which it could extend losses to 1.0826 (July 17 Low) levels.