FXStreet (Mumbai) – The re-emergence of the classic risk-on environment during the European morning continues to dent the safe-haven appeal of the shared currency, pushing EUR/USD back to the familiar ranges near the mid-point of the 1.11 barrier.
EUR/USD falls further from 1.1175 post GDP data
The EUR/USD pair trades -0.08% at 1.1162, now on its way to test day’s low reached at 1.1154 in early Asia. The main currency pair lost footing and falls back in to the negative terrain amid absolute risk-on moods driven by bouncing European equities, diminishing bids for safe-havens such as euro.
The German benchmark, the DAX, rallies 2.25% to 10,335 while the stock son the UK index, the FTSE advances 1.75% at 6,181 points. While pan-European Euro Stoxx is up 2.10% at 3,265.
Meanwhile, traders completely moved past poor Chinese trade data and now digest the latest Euro zone Q2 GDP revision. GDP in the euro zone for Q2 remained at 0.4%, while the yearly change improved to 1.5% from 1.0% previously, Eurostat suggested on Tuesday.
Looking ahead, the major will be influenced by the moves in the European indices amid lack of fresh economic updates as the US calendar also offers nothing of relevance except the labour market conditions data.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1245 (Sept 3 High), above which gains could be extended to 1.1264 (Aug 31 High) levels. On the flip side, support is seen at 1.1154 (Today’s Low) below which it could extend losses to 1.1086 (Sept 3 Low) levels.
(Market News Provided by FXstreet)