EUR/USD – 50-DMA initiates rescue operation for bulls

EUR/USD is witnessing a relief rally in Asia after yesterday’s sharp sell-off failed to pierce the daily 50 moving average.

Rebounds from 50% Fibo support

The spot rebounded from 1.1139 levels, which is the 50% Fibonacci retracement level of the move higher from Brexit day low of 1.0911. Dollar bulls have been on the rampage ever since Yellen said the case for rate hike has strengthened. The common currency slid from 1.1341 to 1.1132 (yesterday’s low) as treasury yields rose.

EUR traders would keep an eye on German unemployment data ahead of the monthly US ADP release due later today. The focus would also be on Fed’s Kashkari’s speech.

EUR/USD Technical Levels

The spot was last seen trading around 1.1155 levels. Break above immediate hurdle of 1.1158 (Monday’s low) would open doors for a re-test of 1.1193 (38.2% of 1.0911-1.1366) and 1.1221 (Aug 12 high). On the lower side, breach of 1.1139 (50% of 1.0911-1.1366) would expose 1.11 handle, under which the spot could target 1.1085 (61.8% of 1.0911-1.1366).