FXStreet (Mumbai) – The EUR/USD pair manages to retain gains above 1.12 handle in the mid-European session amid higher European stocks and falling US treasury yields.
EUR/USD: In a bid to test 50-DMA?
The EUR/USD pair trades 0.21% higher at 1.1211, with the 50-DMA located at 1.1227 in sight. The shared currency clings to gains above 1.12 barrier this session, as the greenback remains pressured on the back of falling US treasury yields after the recent weak US macro data pushes Fed rate hike expectations to early 2016. The benchmark 10-year treasury yields drop -0.68% to 2.042%. While the 2-year yields on the US notes drop -1.94% to 0.597%.
Meanwhile, gains in the major European indices restrict further upside in the EUR/USD pair. Among the major European indices, the pan-European benchmark, the Euro Stoxx 50 trades +0.22% while Germany’s DAX gains +0.37%.
Later in the North American session, a big miss on the US trade numbers could trigger fresh EUR/USD buying while attention will also remain on ECB Draghi’s speech.
EUR/USD Technical Levels
The pair has an immediate resistance at the confluence of 50-DMA and 20-DMA now located around 1.1227-1.1236 region, above which gains could be extended to 1.1249 (Sept 28 High) levels. On the flip side, support is seen at 1.1173 (Today’s Low), below which the next support lies at 1.1149 (Oct 2 Low). A break below the last, EUR bears will take over drowning the pair to 1.1103 (Sept 23 Low) levels.
(Market News Provided by FXstreet)