The bid tone around the EUR strengthens further in the mid-Asian trades, driving EUR/USD to almost four-month peaks above 1.12 handle.
EUR/USD re-attempts 1.1250?
Currently, EUR/USD rises 0.26% to 1.1222, easing-off fresh session highs of 1.1238 reached few minutes ago. Amid complete market disarray, investors’ confidence continues to get smashed and hence, traders find some solace in the safe-haven euro. In times of global uncertainties, as equities crash, investors seek safety assets to protect their capital/ investments and therefore, the demand for euro picks as it is a low-yielding/ safe currency.
Moreover, broad based US dollar sell-off on the back of rising risk-off trades also pushes EUR/USD higher. The USD index drops -0.37% to 96.39, retracing from 96.68 daily tops.
In the day ahead, we have second-liner economic data on the cards, viz., the German industrial production and trade balance figures, while from the US, the JOLTS jobs opening data will be reported. The macro updates are expected to have virtually no impact on the major as the sentiment surrounding the global equities and oil markets will continue to lead the fx space.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.1246/50 Feb 5 High/ round number). A break beyond the last, doors will open for a test of 1.1298/1.1300 (daily R2). On the flip side, the immediate support is placed at 1.1184/80 (Daily low/ 5-DMA) below which at 1.1164/50 (daily pivot/ psychological levels) could be tested.
(Market News Provided by FXstreet)