EUR/USD turns negative below 5-DMA in early Europe

FXStreet (Mumbai) – The EUR/USD pair failed once again near 1.0980 levels and turned lower in the early European trades on the back of renewed talks of further ECB easing and upbeat sentiment in markets.

EUR/USD rejected around 1.0980

Currently, the EUR/USD pair trades -0.06% lower at fresh session lows of 1.0960, having breached the hourly 50-SMA support located at 1.0965 last minutes. A renewed bout of selling interest is seen in the shared currency versus its American counterpart in early Europe, as the European traders hit their desks and continue to negatively react to the ECB QE expansion talks which are back on the table following yesterday’s ECB official Mersch comments. ECB executive board member, Yves Mersch, said in a speech on Monday that policymakers have “by no means used up all our ammunition.”

Adding to the renewed sell-off in EUR/USD, the greenback picked up strength and recovered losses against its major competitors as markets prefer to hold the US currency ahead of a slew of US economic releases due later today. Meanwhile, markets await the European open for further momentum on the major.

EUR/USD Technical Levels

The pair drifts lower and finds the immediate support at 1.0942 (Dec 28 Low), below which 1.0913 (1h 200-SMA) could be tested. To the upside, the immediate resistance is seen at 1.1000 region (round umber). A break beyond the last, doors will open for a test of 1.1020 (100-DMA).

The EUR/USD pair failed once again near 1.0980 levels and turned lower in the early European trades on the back of renewed talks of further ECB easing and upbeat sentiment in markets.

(Market News Provided by FXstreet)