EUR/USD surrenders gains, eyes hourly 50-MA

By FXStreet FXStreet (Mumbai) – The bid tone around the EUR weakened amid rally in the European stocks, pushing the EUR/USD lower from the session highs to 1.0850 levels.

Focus on European stocks

The pair is guided by the action in the European stock markets, since the economic calendar is empty. The pan-European Euro Stoxx index rallied 0.80%, which ensured the pair moved lower from the high of 1.0883 levels.

The pair ran out of steam as it neared the critical resistance of 1.0890 (38.2% of 1.1495-1.0517) levels. Ahead in the day, the currency pair could continue to track the movement in the equity markets.

EUR/USD Technical Levels

The immediate resistance is seen at 1.0887 (hourly 100-MA)-1.0890 (38.2% of 1.1495-1.0517), above which the pair could rise to 1.0931 (hourly 200-MA). On the other hand, a break below 1.0846 (hourly 50-MA) would expose 1.0803 (Thursday’s low).
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Source:: FX Street