EUR/USD on the back foot on signs of risk-on in equities

By FXStreet The EUR/USD now trades largely unchanged on the day as signs of risk-on the European equity futures strengthened offered tone around the funding currency EUR.

Rejected at 23.6% Fibo

The spot was offered after it failed to sustain above 1.1173 (23.6% of 1.0517-1.1376) as Asian stocks traded higher, boosted by industrial and real estate shares in the region. European equity futures began the day on a positive note as well, with DAX futures trading 1% higher on the day.

Consequently, the common currency continued trimming gains and now trades flat on the day around 1.1138 levels. The data calendar in US is empty; hence the pair is at the mercy of the overall market sentiment.

EUR/USD Technical Levels

The immediate support is seen at 1.11-1.1091 (5-DMA), under which the spot could drift lower to 1.1048 (38.2% of 1.0517-1.1376), which if taken out would expose 1.10 handle. On the other hand, a break above resistance at 1.1173 (23.6% of 1.5017-1.1376) would expose 1.1218 (Mar 10 high) and finally 1.1245 (Feb 5 high).
For more information, read our latest forex news. …read more

Source:: FX Street