EURUSD News (current 1.0550)

[ForexBrokerInc]

During today’s session, the US Dollar gradually recovers Thursday’s sharp sell-off as DXY (Dollar Index) continues its momentum towards the psychological level of 100 points.

Given the strength of Euro sellers seen in this quarter of 2015 as well as ongoing political turmoil within the Eurozone, the parity price level seems to be becoming more realistic with each trading day that passes us by. It’s worth mentioning as well that Germany’s 30 year bund yield dropped below 0.75% for the first time ever and the situation is seen as getting “crazier and crazier’.

How long can Euro support its current important technical levels at 1.05 and then 1.0350 before the 1:1 exchange rate?

Looking at the pace of the sell-offs at recent levels at 1.1150 and later 1.08, the 1.05 and 1.035 levels may as well be just holding levels during quieter Asian session before eventually testing 1:1. Having taken fundamental and technical views into consideration it is likely that any corrective movements up will be seen as an opportunity to enter new short positions.

Corrective moves may somehow be limited to price levels at 1.08, but break above would require significant institutional buying, which is highly unlikely to happen so close to 1:1 rate.

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