EUR/USD: dollar bulls back in command, but for how long?

By FXStreet FXStreet (Mumbai) – EUR/USD’s upbeat momentum faltered near 1.1050 – key resistance in the previous session, and the price retreated thereon and now looks to give away 1.10 handle as we head into the late-Asian trades.

EUR/USD off monthly highs, attacks 1.1000

Currently, the EUR/USD pair loses -0.13% and trades at 1.1008, testing 1.10 barrier. The main currency pair halted its 2-day winning streak and turned negative after the USD bulls jumped back on the bids, attempting a minor correction after yesterday’s extensive slide.

On Wednesday, the shared currency rallied to the highest levels since Oct versus the US dollar after ECB’s Governing Council members backed the recent ECB policy decision, citing that markets had unrealistic easing expectations from the central bank. This further fuelled another round of post-ECB shorts squeeze.

Looking ahead, in absence of macro update for the EUR in the day ahead, focus now remains on the SNB decision which may have major impact on the EUR/CHF pair, eventually impacting EUR/USD somewhat. While the sentiment on the European stocks will also play a key role today.

EUR/USD Technical Levels

The pair struggles above 1.10 handle, with the next hurdle in sight is located at 1.1041 (Dec 9 High) and from there …read more

Source:: FX Street