EUR/USD remains capped below 1.0900 on stronger USD

By FXStreet FXStreet (Mumbai) – Having bottomed ahead of hourly 200-SMA near 1.0870 levels, EUR/USD is seen wavering in a narrow range below 1.09 handle, with the offered tone intact following the releases of weaker Eurozone Sentix figures.

EUR/USD consolidates below 1.0900

Currently, the EUR/USD pair trades -0.39% lower at 1.0883, retracing slightly from session lows struck at 1.0873, near hourly 200-SMA placed at 1.0865. The main currency pair continues to consolidate to the downside before the next leg lower, as the US dollar gradually keeps pushing higher against its major competitors against the backdrop divergent central banks’ outlooks.

Moreover, the positive sentiment on the European stocks combined with higher US treasury yields point towards persisting risk-on market profile and therefore, weighs the euro, which acts more as a funding currency now. Germany’s DAX gains 0.55% while the Euro Stoxx 50 is up 0.53%.

Furthermore, the downbeat Eurozone Sentix Investor confidence data adds to the downward pressure on the EUR, keeping the major in the red. The headline EMU Sentix Economic Index fell 6.1 points to +9.6 in January. Later today, the US labor market conditions report will be eyed amid a data-quiet US session ahead.

EUR/USD Technical Levels

In terms of technicals, the pair finds the …read more

Source:: FX Street