EUR/USD jumps-off 50-DMA support as risk-off seeps back

By FXStreet FXStreet (Mumbai) – The EUR/USD pair is seen recovering losses and trades muted in the late Asian/ early European session, as the renewed weakness in the Chinese equities prompts flight to safety across the board.

EUR/USD receives fresh impetus from lower China stocks

Currently, the EUR/USD pair trades almost unchanged at 1.0831, attempting a minor recovery from session lows reached at 1.0815, where the 50-DMA intersects. The shared currency is fighting hard to regain lost footing against its US counterpart, with the bulls received fresh boost from the selling seen across the Chinese equities post-lunch break, which sparked renewed wave of risk-aversion into markets. The benchmark Shanghai Composite is down -0.56% versus +0.40% seen earlier while the A50 index turns -0.28% lower versus +1% previous.

Moreover, markets moved past the disappointing German CPI figures and now anticipate an increase in price pressures in the Euro land, which keeps the sentiment around the EUR/USD buoyed. The EZ CPI due later in the session ahead, is seen rising 0.4% in Dec versus a 0.2% rise seen in Nov.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.0845/68 (5-DMA/ 1h 50-SMA). A break beyond the last, doors will open …read more

Source:: FX Street