EUR/USD: minor recovery headed to the 20 DMA?

By FXStreet FXStreet (Guatemala) – EUR/USD has continued with the squeeze after a wobble in European trade on dovish ECB members, but we are now well onto the 1.07 handle again and through the 200 SMA on the hourly sticks.

There is little rhyme nor reason to the weakness in the dollar, a technical glitch to its northerly journey. The Fed are still tipped to hike in December while having likely met their jobs target in the US economy while the question that might be left over is one of the potential deflationary headwinds from overseas, although there may not be any perfect timings and the Fed may wish to prove to the market and simply get on with it.

EUR/USD levels

Technically, the 9 DMA has been broken and a fade may cap the progress and keep the price within the descending channel from business towards 1.1400. However, a continuation in the minor recovery threatens the 1.08 handle and ont the 20 DMA at 1.0849.
For more information, read our latest forex news. …read more

Source:: FX Street