EUR/USD hit fresh session highs, S&P 500 futures drop 1%

By FXStreet FXStreet (Mumbai) – The EUR/USD hit a fresh session high of 1.0890 as the S&P 500 futures dropped 1%, pointing to heightened China-led risk aversion ahead.

Safe haven/funding currencies on the rise

The risk-off is supporting gains in the safe haven/funding currencies like JPY, EUR. Both currencies are up 0.42% against the US dollar. Meanwhile, the regional safe haven CHF is also up 0.70% against the US dollar. A classic risk aversion is underway, with USD up against risk/commodity currencies like GBP and AUD.

Meanwhile, slightly hawkish comments from the ECB member and Bundebank head Weidmann hit the wires, but did not have any impact on the EUR/USD pair. The pair now trades around 1.0885 levels.

EUR/USD Technical Levels

The immediate resistance is seen at 1.0890 (38.2% of 1.1495-1.0517), above which the gains could be extended to 1.0960 (50-DMA). A break higher would see the pair test offers t 1.10 levels. On the other hand, a break below the hourly 50-MA at 1.0853 would expose 1.0808 (July 20 low).
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Source:: FX Street