FXStreet (Mumbai) – The EUR/USD pair bounced-off lows and trimmed losses amid strong rebound seen in the European stocks, while markets continue to digest the latest set of economic releases from Germany.
EUR/USD supported at hourly 100-MA
The EUR/USD pair trades -0.17% at 1.1229, recovering from fresh session lows struck at 1.1212 levels in last hours. The main currency pair keeps the bearish tone intact as the euro remains undermined after the recent series of German data, including the latest employment report, disappointed markets.
Tuesday’s German CPI stood below expectations, falling 0.2% y/y while the latest retail sales figures for August also missed estimates, down 0.4% on a monthly basis versus the 0.2% expected.
The country’s employment report showed an increase of 2k registered unemployed in Sept, after a revised 6k decrease posted in Aug. The German jobless rate held steady at 6.4%.
Further, European markets rallied on Wednesday, further boosting the risk-on market profile and the risk currency – US dollar, thereby driving EUR/USD lower.
Later in the day, markets now await Eurozone flash CPI and labour market report ahead of the US ADP figures and Fed Yellen’s speech.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1285 (Sept 29 High), above which gains could be extended to 1.1331 (Sept 21 High) levels. On the flip side, support is seen at 1.1200 (Psychological levels) below which it could extend losses to 1.1163 (Sept 24 Low) levels.
(Market News Provided by FXstreet)