Wednesday, February 21, 2018
Banner Top
EUR/USD: Will buyers regain control above 1.2200?
Banner Content
  • DXY rebound falters in Asia.
  • German politics, ECB jawboning to keep upside limited.
  • Eyes US macro news for fresh incentives.

The EUR/USD pair staged a solid comeback in Asia, having reversed from four-day lows of 1.2165. However, sellers continued to lurk just ahead of the 1.22 handle, leaving the rates in a consolidative phase below the last.

The spot is seen trying hard to retain the bids over the last hours, as upbeat US data-led rebound in the US dollar from multi-year lows versus its main peers loses steam. Expectations of higher global interest rates, as most major central banks are likely to join the Fed in normalizing their monetary policy this, continues to dampen the sentiment around the greenback

On Wednesday, the main currency pair corrected sharply from its best levels since Dec 2014 at 1.2323, after markets used the excuse of the ECB officials’ jawboning the currency to book profits on their EUR longs, as attention now turns towards the ECB monetary policy decision due next week.

ECB’s Nowotny: Euro exchange rate must be observed

ECB’s Constancio: Worried about Euro moves that don’t reflect fundamentals

Meanwhile, the major showed limited reaction to the Eurozone final CPI numbers, which confirmed the flash estimate of 1.4% on an annualized basis. In the day ahead, markets eagerly await a fresh batch of macro news from the US docket for fresh impetus, as the EUR calendar remains data-dry. However, the speech by the German Bundesbank President Weidmann will be eyed in the European session.

EUR/USD Technical Levels

Chief Analyst, Valeria Bednarik, writes: “The 4 hours chart present some minor divergences, as the price is recovering after struggling around a bullish 20 SMA, but the Momentum indicator keeps heading lower around its 100 level, mostly due to the price being below its previous highs. Any possible upcoming decline should be considered corrective after the pair added roughly 400 pips pretty much straight, yet renewed buying interest above 1.2280 is now required to revert the short-term negative tone and consider higher highs ahead. Support levels:  1.2190 1.2155 1.2110. Resistance levels: 1.2280 1.2320 1.2350.”

Banner Content

0 Comments

Leave a Comment

Jimmy BUY LICENSE 1 out of 5 agents online CHANNELSAGENTS Add agent Add communication channels: Chat on site Telegram Mobile SDK Facebook Viber Email WhatsApp xtreamacademy.com SETTINGS ARCHIVES STATISTICS ASSIGN AGENTS Jimmy JivoChat code is not installed on this site INSTALL CODE xtreamacademy.com SETTINGS ARCHIVES STATISTICS ASSIGN AGENTS Jimmy JivoChat code is not installed on this site INSTALL CODE Install Code on xtreamacademy.com Installation Send instructions to my webmaster Install the following code on every page of your site right before the closing tag, or use one of the CMS plugins below: COPY TO CLIPBOARD Or select and install one of following plugins OPEN SITE SETTINGS Download the agent's app: For Windows & MacAndroidiPhoneBrowser-based Support License Agreement JivoChat Inc. © 2011-2018. All rights reserved