EUR/USD hits news session highs as risk-off returns

By FXStreet FXStreet (Mumbai) – EUR/USD’s recovery from 1.08 handle gained further momentum in the mid-Asian trade, as risk-aversion appears to slowly seep into markets following China’s PMI data.

EUR/USD rises to 10-DMA at 1.0853

The latest set of dismal Chinese manufacturing PMI reports came to the rescue of the EUR bulls and boosted the demand for low-yielding/safe currencies amid growing risk-aversion, now pushing EUR/USD to fresh session highs at 1.0852, up 0.18% on the day.

Investors prefer to protect their assets in times of global uncertainties, with worries over China economic worries back in focus. While weakness in commodities’ prices also dents sentiment and hence, boosts the demand for the EUR.

Markets now await a raft of final manufacturing PMI releases from across the Euro area economies for further momentum on the major. While the US ISM manufacturing PMI as well core PCE price index will be also closely watched.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.0870/78 (1h 200 & 100-SMA). A break beyond the last, doors will open for a test of 1.0900/12 (round number/ 100-DMA). On the flip side, the immediate support is placed at 1.0809/00 (Jan 29 Low), below which …read more

Source:: FX Street