FXStreet (Mumbai) – A negative start to the European markets lends some support to the EUR bulls, lifting the EUR/USD pair from lows near 1.0720 region.
EUR/USD holds above 1.07 handle
Currently, the EUR/USD pair trades -0.11% lower at 1.0735, recovering from session lows struck at 1.0719 in last hours. The main currency pair trims losses and looks to extend the recovery towards 1.0750 levels on the back of rising demand for the funding currency in the EUR amid falling European stocks. Germany’s DAX drops -0.66%, the UK’s FTSE loses -0.70 while the pan-European benchmark, the Euro Stoxx 50 falls -0.46%.
However, a fresh pick-up in the USD buying across the board is likely to keep the gains in check as the attention shifts once again to the persistent monetary policy divergence between both continent ahead of the Dec 16 Fed meeting minutes scheduled for release later today.
Meanwhile, risk-off sentiment dominates so far this session, with markets now eyeing a series of final services PMI from the euro area and a batch of US economic data for fresh incentives.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0810/12 (50-DMA/ 1h 50-SMA). A break beyond the last, doors will open for a test of 1.0860/69 (1h 100-SMA/ 10-DMA). On the flip side, the immediate support is placed at 1.0709/00 (Jan 5 Low/ round number), below which 1.0650 (pre-ECB levels) could be tested.
(Market News Provided by FXstreet)