4 Aug 2015
EUR/USD: Bulls struggle to extend gains, stays around 1.0960
FXStreet (Mumbai) - The EUR/USD recovered losses ahead of the European session, but the bulls are struggling to extend gains into the positive territory, restricting the pair around 1.0960.
Will the AUD led recovery last?
The rally in the AUD/USD pair after the RBA statement triggered a broad based weakness in the USD, owing to which the EUR/USD spot recovered from the low of 1.0932 to print a session high of 1.0965. However, the odds of the recovery falling apart are higher as the treasury yield curve continues to flatten, indicating rising rate hike expectations.
With no major data due for release in Europe, the rate hike expectations in the US are likely to influence the movement in the FX markets today. Consequently, a further flattening of the yield curve could once again weaken the Euro.
EUR/USD Technical Levels
The spot currently trades around 1.0960 with immediate resistance located at 1.0964 (50% of Mar-May rally) followed by another hurdle at 1.10 handle. On the other hand, support is seen at 1.0932 (daily low) and 1.0893 (Thursday’s low).
Will the AUD led recovery last?
The rally in the AUD/USD pair after the RBA statement triggered a broad based weakness in the USD, owing to which the EUR/USD spot recovered from the low of 1.0932 to print a session high of 1.0965. However, the odds of the recovery falling apart are higher as the treasury yield curve continues to flatten, indicating rising rate hike expectations.
With no major data due for release in Europe, the rate hike expectations in the US are likely to influence the movement in the FX markets today. Consequently, a further flattening of the yield curve could once again weaken the Euro.
EUR/USD Technical Levels
The spot currently trades around 1.0960 with immediate resistance located at 1.0964 (50% of Mar-May rally) followed by another hurdle at 1.10 handle. On the other hand, support is seen at 1.0932 (daily low) and 1.0893 (Thursday’s low).