FXStreet (Mumbai) – The EUR/USD pair is seen oscillating back and forth in a 15-pips tight range in the Asian session so far, stalling its recovery near hourly 100-SMA placed at 1.0860.
EUR/USD looking for fresh incentives
Currently, the EUR/USD pair trades almost unchanged at 1.0850, trying hard to extend beyond 1.0860 levels. The main currency pair is seen gathering pace for further upside, having bounced-off the solid support near 1.0840 region on several occasions.
The shared currency remains supported against its American rival in Asia as the deteriorating risk sentiment continues to favour the low-yielding/safe currency euro. While increasing expectations of fewer rate hikes by the Fed this year in wake of the recent market volatility and oil rout, continue to weigh on the US treasury yields and hence collaborates to the positive sentiment around EUR/USD. The 2-year yields on treasures are down -1.42% to trade at 0.857%, while the benchmark 10-year yields are losing -0.90% to 2.005%.
Meanwhile, focus will continue to remain on the oil price action amid a data-light EUR calendar ahead, while the US calendar holds consumer confidence and flash services data of relevance today.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0860/66 (1h 100-SMA/ 20-DMA). A break beyond the last, doors will open for a test of 1.0900 (round number/ daily high). On the flip side, the immediate support is placed at 1.0803 (Jan 13 Low), below which 1.0786/77 (Jan 25 & 21 Low) could be tested.
(Market News Provided by FXstreet)