Having bottomed near hourly 50-SMA in the last hours, the EUR/USD pair is now attempting to regain 1.12 handle as risk-off trades re-emerged as the European stocks resumed yesterday’s decline.
EUR/USD finds support from negative equities
Currently, EUR/USD trades almost unchanged at 1.1195, quickly reversing a downward spike to lows at 1.1168, where the hourly 50-SMA intersects. The main currency pair is fighting hard to regain lost footing, with the bulls offered respite from the renewed selling seen in the European stocks, after having opened slightly higher. Germany’s DAX is down -0.40%, the UK’s FTSE drops -0.10%, while the pan-European benchmark, the Euro Stoxx slides -0.61%.
However, the upside looks limited as the common currency remains pressured against the greenback on the back of poor set of German data released earlier on the day. Industrial output in Germany fell 1.2% Dec, while the economy’s trade surplus shrank in Dec.
Meanwhile, the major will continue to monitor the developments surrounding the European markets ahead of the US JOLTS job opening data due for release later in the NY session.
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 1.1168/66 (Daily low/ 1h 50-SMA) below which at 1.1135 (1h 100-SMA) could be tested.
(Market News Provided by FXstreet)