EUR/USD recovers on 1% drop in Stoxx 50 index

By FXStreet Carry unwind triggered by losses in the major European equity markets is helping the EUR/USD regain poise, with prices now hovering around 1.1173 levels.

Supported by 1.1148

Stoxx 50 index is down 1%, with major indices – DAX, FTSE, CAC – trading lower by 0.7% to 1.2%. The resulting carry unwind offered relief to the EUR/USD pair. Pair thus recovered from the session low of 1.1148 levels.

However, gains are hard to come as the hawkish comments from Fed officials and the resulting rise in April/June rate hike bets is keeping the bird under pressure.

Traders await the US data release – initial jobless claims and durable goods orders. fEd’s Bullard due to speak later today would attract market attention s well. Volumes may remain weak on account of a holiday shortened week.

EUR/USD Technical Levels

The immediate hurdle is seen at 1.12 (psychological figure), ahead of a major resistance at 1.1242 (5-DMA) and 1.1285 (Mar 21 high). On the other hand, a breakdown of 1.1173 (23.6% of 1.0517-1.1376) would open doors for a drop to 1.1115 (50% of 1.1714-1.0517) and 1.11 levels.
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Source:: FX Street