EUR/USD drops to 50-DMA, Risk-on weighs

By FXStreet FXStreet (Mumbai) – The EUR/USD pair extended losses to trade around 50-DMA located at 1.0824 levels as the risk-on in the Asian equities and European futures is hurting carry currencies.

Stoxx 50 futures down 1.8%, EUR at session lows

The common currency, often used to fund risk-on investments, is trading around daily lows on account of 1.8% rise in the Euro Stoxx 50 futures. Other major regional index futures are trading at least 1.5% higher as well.

The immediate focus now is on Draghi speech, which will be followed by the PMI manufacturing releases across the Eurozone. Across the pond, existing home sales and manufacturing PMI will be released.

EUR/USD Technical Levels

The immediate support is seen at 1.08, under which the pair could revisit previous session’s low of 1.0777. A break lower would expose 1.0748 (23.6% of 1.1495-1.0517). On the other hand, a rebound from the 50-DMa at 1.0824 could see the pair re-test 1.09 levels.
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Source:: FX Street