EUR/USD climbs back to 1.0880 as European stocks drop

By FXStreet FXStreet (Mumbai) – The EUR/USD pair caught a fresh bid wave near hourly 50-SMA at 1.0852 post-European open, and the prices swung back higher towards the familiar range near 1.0880 region.

EUR/USD bounces-off lows amid negative equities

Currently, the EUR/USD pair trades modestly flat at 1.0877, posing a sold recovery from daily lows reached at 1.0855. The shared currency wiped-out losses and tries to extend higher against its American rival as a renewed bout of risk-aversion hit markets after the European stocks joined the global sell-off. Germany’s DAX drops -1.31%, the UK FTSE slides -1.37% while the Pan-European benchmark, the Euro Stoxx 50 tanks -1.44%.

However, broad based US dollar strength, on the back of rising US treasury yields, is expected to keep the upside restricted. The 2-year yields on the US treasuries rise 0.46% to 0.915% while the benchmark 10-year yields gain nearly 1% to trade at 2.082%.

Attention now shifts towards the Euro group meetings after the German factory gate prices data had virtually no impact on the major. While the sentiment on the global stocks will play a key role.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.0893/1.0900 (20-DMA/ round number). A …read more

Source:: FX Street