EUR/USD stalls, European stocks open strong

By FXStreet FXStreet (Mumbai) – The uptick in the EUR/USD is being capped around 1.1236 (38.2% of Mar-Aug rally) as stock markets in Europe opened on a strong note ahead of the European Central Bank (ECB) rate decision.

EUR struggles as stocks rally

The pan-European Euro Stoxx 50 index strengthened 0.8% in the early session. The German DAX and UK’s FTSE are up 15 each. Consequently, the EUR is having a tough time extending gains. However, the losses in the EUR are being capped due to the nervous action in the major US index futures. The S&P 500 futures now trade largely unchanged on the day.

Investors shall continue to track the movement in the equity markets. Meanwhile, the service PMI data release across the Eurozone could also influence the EUR/USD pair.

EUR/USD Technical Levels

The immediate resistance is seen at 1.1258 (hourly 50-MA), above which gains could be extended to 1.1333 (hourly 200-MA). On the other side, support is seen at 1.12 and 1.1155 (Aug 28 low).
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Source:: FX Street