EUR/USD extending the recovery from 200-DMA

By FXStreet The main currency pair holds onto the key 200-DMA support placed at 1.1025 and now attempts a minor-recovery few pips shy of 1.1050 levels.

EUR/USD rises as USD weakens

Currently, EUR/USD trades 0.14% higher at 1.1046, testing fresh session highs reached at 1.1049. The main currency pair caught a fresh bid-wave last minutes after the Asian stocks fell deeper in the red zone and accelerated the risk-off trades across the financial markets, boosting the demand for the safe/ low-yielding currency EUR. Japan’s Nikkei slips -0.50%, Australia’s ASX is down -0.46%, while the Shanghai Composite loses -1.20%.

The renewed bout of risk-aversion was triggered by fresh selling seen in the oil prices, which rattled investors’ confidence once again. Both crude benchmarks are down over -1.50% so far this session.

Looking ahead, markets await a set of German economic data, with the Ifo surveys expected to remain in focus ahead of the US consumer confidence and housing data due later in the NY session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1083/87 (1h 50-SMA/ 5-DMA). A break beyond the last, doors will open for a test of 1.1100/06 (round number/ 1h 100-SMA). On the flip side, the immediate support …read more

Source:: FX Street