EUR/USD capped below 1.10, recedes to 1h 50-SMA

By FXStreet FXStreet (Mumbai) – EUR/USD prolongs its post-FOMC recovery for the second day in a row, although failed to break through 1.10 barrier on couple of attempts seen during Asia.

EUR/USD wavers below 5-DMA

The EUR/USD pair trades modestly flat at 1.0981, having found strong support above the daily pivot located at 1.0955. The major remains on the bids and keeps the recovery mode intact as the USD bulls take a backseat following the dismal US economic releases in the last US session.

The advance US GDP estimate showed an expansion of 1.5% in Sept quarter, just as the markets had been expecting, slowing down sharply from a 3.9% rise seen in the second quarter. While the pending home sales index fell 2.3% to 106.8 points in September, completely missing the 1% gain markets had been expecting.

Moreover, the mixed performance seen on the Asian equities also fuels the demand for the safe-havens such as the euro. The Nikkei rallies 1% while Australia’s ASX closed -0.52% lower. While the Shanghai Composite index trades muted below 3,400 levels.

Looking ahead, markets will await the German retail sales data ahead of the Eurozone CPI and employment data due later in the European session. While a batch …read more

Source:: FX Street