The stocks markets in Europe opened higher, establishing risk-on trade and thus pushing the EUR/USD pair back to its 200-DMA located at 1.1047 .

German regional CPI rises

The first of the German preliminary regional CPI release hit the wires. Saxony CPI rose 0.3% m/m compared to the 0.9% drop registered in the previous month. However, the positive figure was overshadowed by the rally in European stocks.

The pan-European Euro Stoxx 50 index advanced almost 1% and strengthened the offered tone around the funding currency EUR. Consequently, the pair fell from the daily high of 1.1068 to trade just below its 200-DMA at 1.1047.

EUR/USD Technical Levels

The immediate resistance is seen at 1.1076 (10-DMA), above which the spot could target 1.11 handle. A break higher would expose 1.1126 (weekly high). On the other hand, a breakdown of the immediate support at 1.10 could see the pair drop to 1.0975 (50-DMA), under which 100-DMA at 1.0953 could act as a strong support.

The stocks markets in Europe opened higher, establishing risk-on trade and thus pushing the EUR/USD pair back to its 200-DMA located at 1.1047 .

(Market News Provided by FXstreet)

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By FXOpen