EUR/USD: up to test 1.13 handle; not there quiet yet

FXStreet (Guatemala) - EUR/USD has been on the bid from below the 200 SMA at 1.1196 and crossed above the 200 DMA at 1.1254 on a sharp spike and run on the greenback and now is set-up to pop the 1.13 handle to test offers at 1.1320.

EUR/USD has been boosted by 0.70% with unwinding of more carry trade yet again while profits are taken out of the Asian and European bourses. Wall Street remains bullish today so far, with eh three majors up over 1%. However, oil has also rallied over 3% and Gold is also up 0.72% at time of writing, weighing on the greenback while the 10y yields are flat.

EUR/USD bulls making hey while the sunshines

However, the major is headed towards tough offers on the 1.13 handle if it manages a clear break and fundamentals are heavy on the euro in respect to potential increases of QE. If markets begin to stabilize, this too could weigh in the price ahead of the Fed decision on the 17th of the month.

EUR/USD levels

Technically, above 1.1332 would allow for a retest of 1.1460/70, as explained by Karen Jones, chief analyst at Commerzbank who said that this remains the barrier to the 1.1713 recent high and the top of the channel at 1.1753. "Our attention remains on the base of the cloud circa 1.1000. This guards the base of the channel at 1.0911. Near term rallies should now struggle and ideally be contained by 1.1260, 1.1332."