EUR/USD rejected at 1.0950, drops to key support

By FXStreet FXStreet (Mumbai) – EUR/USD extends its overnight consolidative mode into the Asian session, with renewed selling interest witnessed in last hours, taking the price lower to test NY lows reached at 1.0925.

EUR/USD: Bears retain control

Currently, the EUR/USD pair loses -0.11% and trades at fresh session lows of 1.0930, heading towards key support located near 1.0925 region – the confluence of 5-DMA and NY low. Fresh offers ran through the EUR/USD pair after the US dollar regained upside momentum on returning risk-on trades with Japanese markets attempting recovery from the recent slump. Japan’s Nikkei rallies 1.22% to 19,282 points.

Moreover, markets shrugged off oil price weakness and preferred to hold the US currency amid a slew of ECB officials’ speeches delivered on Thursday, justifying ECB’s Dec disappointment. Moreover, the euro remains undermined against the American dollar on divergent monetary policy outlook between both continents, with the ECB turning out less dovish last week while the Fed appears on track to raise rates next week.

Millan Mulraine, deputy chief economist at TD Securities, noted, “The runway has been cleared for the liftoff in rates next week, and with near unanimity among professional forecasters and the market pricing in above-80% odds of …read more

Source:: FX Street