FXStreet (Mumbai) – The EUR/USD pair fell to a fresh session low of 1.1116 as the bid tone on the USD improved amid the rally in the European stock markets.
Risk-on rally weighs over EUR
The common currency turned lower in early Europe and extended losses to trade below its 100-MA located at 1.1144 levels. The pan-European Euro Stoxx 600 index advanced 2.5%,capping the demand for funding currencies like EUR. Moreover, the Fed rate hike bets have become more sensitive to stock market moves off late.
Consequently, the uptick in the stock markets resulted in the uptick in the US dollar as well. Ahead in the day, the spot could be influenced by the Fed speak and the US Q2 GDP figure due for release later today.
EUR/USD Technical Levels
The pair currently trades around 1.1125. The immediate support is located at 1.1105 (Sep 23 low), under which the pair could drop to 1.1052 (Mar 26 high). On the other side, resistance is seen at 1.1144 (100-MA) and 1.1192 (200-MA).
(Market News Provided by FXstreet)