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EUR/USD: Recovery capped by hourly 100-SMA, EU stocks stabilize

FXStreet (Mumbai) - The EUR/USD pair managed to recover lost ground somewhat and reverted to the positive territory following the release of government debt figures, as reflected by the Eurostat.

EUR/USD retraces to hourly 20-SMA

The EUR/USD pair trades 0.05% higher at 1.1351, unable to extend beyond the hourly 100-SMA upside barrier located at 1.1362. The major attempts a tepid-recovery from 1.1335 session lows and jumps back into the bids, as the European stocks pause their rebound and stabilize in the green.

The EUR/USD pair dropped sharply below the daily pivot at 1.1351 and struck fresh lows last hours as markets witnessed turnaround in risk conditions after the European stocks flipped to gains.

While figures from the Eurostat, which revealed that the government indebtedness in the Euro zone stood at 92.1% in 2014, an increase from 91.1% at the end of 2013, also weighed on the shared currency.

In the day ahead, the major will track the sentiment on the Wall Street amid a data-dry EUR calendar. While trading will continue to remain light ahead of Thursday’s ECB decision.

EUR/USD Technical Levels

The pair failed once again near the h1 200-SMA located near 1.1374 which acts as the immediate resistance, beyond which 1.1400 (round number) would be tested and from there to 1.1413/16 (Oct 13 High + daily R3). While the immediate support is located at 1.1300 (psychological levels), a breach of the last would expose 1276 (50-DMA), below which floors open for a test of 1.1250 (daily S3).

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