EUR/USD finds takes at 61.8% Fib, tests 50-DMA

EUR/USD found takers around 1.1095 (61.8% of the drop seen in October) in early Asia and is now trading around the 50-DMA level of 1.1125.

Eyes BOE and US data

Bank of England (BOE) rate decision, Quarterly Inflation Report (QIR) and Carney’s speech could trigger sharp moves in EUR/GBP, which could influence EUR/USD pair in the European session.

Later in the day, traders would keep an eye on the US ISM non-manufacturing release. The employment sub index could influence the treasury yields and therefore overall demand for the US dollars.

EUR/USD Technical Levels

The spot was last seen trading around 1.1118. Previous day high stands at 1.1123, while the 50-DMA hurdle is seen at 1.1125. In terms of technical the technical pattern, the daily chart boasts of a bearish 50-DMA and 200-DMA crossover.

A break above 50-DMA would open doors for a test of 200-DMA of 1.1182. A violation there would trigger stops and could lead to a quick spike to 1.1246 (Oct 3 high).

On the lower side, 1.1095 (61.8% of Oct rally) could offer support, which if breached would expose support at 1.1048 (50% of Oct rally + 5-DMA), under which the psychological support of 1.10 could be put to test.