EUR/USD testing bids at 1.12 as European stocks rally

By FXStreet The EUR/USD pair extended losses seen in Asia to trade around 1.12 levels as the European stock markets tracked Asian equities higher.

EUR heading lower as Stoxx 50 rallies

The currency is attempting a break below 1.12 handle as the Euro Stoxx 50 index gained more than 2% in early trading. The relief rally in Asia and now in Europe has put breaks on the carry unwind, which was primarily responsible for the rally in the funding currency EUR.

The trading volumes may dry up later in the day on account of the holiday in the US. The spot hit a daily low of 1.1194 and now trades around 1.12 handle.

EUR/USD Technical Levels

The immediate resistance is seen at 1.1236 (38.2% of Mar low-Aug high), which it taken out shall open doors for a rally to 1.13. On the other hand, a breakdown of 10-DMA support at 1.1192 could see the spot drop to 1.1088 (50% of Mar low-Aug high).
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Source:: FX Street