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6 Aug 2015
EUR/USD drops to session lows, awaits US data
FXStreet (Mumbai) - The EUR/USD pair fell to a session low of 1.0880 after having witnessed the sideways action around 1.09 during much of the European session.
Supported by rise in the EUR/GBP
The EUR bulls lack strength to take the EUR/USD pair back above 1.09 handle, although the rise in the EUR/GBP cross has restricted losses around 1.0880. The common currency gained ground against the Sterling after the BOE minutes showed only one member in favour of a rate hike. The gilt yields fell, indicating a delay in the rate hike, as the BOE halved its 2015 inflation forecast.
BOE’s Carney also stated that the timing of rate hike is nearing, but is data dependent. The pair now awaits the US data, which could show initial jobless claims last week ticked higher to 273K from 267K.
EUR/USD Technical Levels
The spot hovers just above 1.0880. The immediate support is seen at 1.0879 (Tuesday’s low), followed by another support at 1.0848 (Wed’s low). On the other hand, resistance is seen at 1.09 and 1.0964 (50% of Mar-May rally).
Supported by rise in the EUR/GBP
The EUR bulls lack strength to take the EUR/USD pair back above 1.09 handle, although the rise in the EUR/GBP cross has restricted losses around 1.0880. The common currency gained ground against the Sterling after the BOE minutes showed only one member in favour of a rate hike. The gilt yields fell, indicating a delay in the rate hike, as the BOE halved its 2015 inflation forecast.
BOE’s Carney also stated that the timing of rate hike is nearing, but is data dependent. The pair now awaits the US data, which could show initial jobless claims last week ticked higher to 273K from 267K.
EUR/USD Technical Levels
The spot hovers just above 1.0880. The immediate support is seen at 1.0879 (Tuesday’s low), followed by another support at 1.0848 (Wed’s low). On the other hand, resistance is seen at 1.09 and 1.0964 (50% of Mar-May rally).