FXStreet (Mumbai) – EUR/USD caught a fresh bid-wave over the last hour and bounced sharply higher from near the mid-point of 1.08 handle.
EUR/USD rises as oil slips back in the red
A renewed bout of selling interest seen in the oil prices reinforced risk-averse conditions into the markets and hence, lifted EUR/USD from near daily pivot at 1.0852 to print fresh highs at 1.0882. However, the major failed to sustain at higher levels and retreated slightly to now trade at 1.0869, almost unchanged on the day.
Moreover, the pair found fresh impetus from the ongoing weakness in the European indices futures, which point towards a bearish start to the European markets. In times of turmoil, as equities decline, the carry trades in the EUR comes to a halt, which boosts the bids for the EUR/USD pair. The pan-European benchmark, the Euro Stoxx 50 futures drop -0.69% ahead of Europe open.
Meanwhile, a subdued US dollar across the board ahead of the much awaited FOMC decision, also keeps the sentiment buoyed around EUR/USD.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0886/ 1.0900 (50-DMA/ round number). A break beyond the last, doors will open for a test of 1.0922/27 (Jan 21 High/ 100-DMA). 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)