FXStreet (Mumbai) – Fresh bids ran through the EUR/USD pair at 50-DMA in mid-Asia, and the major regained 1.09 handle and beyond amid intensifying risk-off environment.
EUR/USD finds support at 50-DMA at 1.0896
Currently, EUR/USD trades 0.18% higher at 1.0907, hovering close to fresh session highs posted at 1.0919 last hours. The main currency pair manages to recover ground and swings back sharply higher in the last hours, as the low-yielding common currency was back in demand as most major Asian indices accelerates to the downside tracking fresh sell-off in the oil prices. Japan’s Nikkei drops -0.92%, while the Australian ASX 200 closed down -1%. While both crude benchmarks are sliding over -2% so far this session.
Further, the major also finds support from the falling treasury yields, especially after the recent series of dismal US fundamentals cast doubts on the Fed rate hike prospects for this year. The 2-year treasury yields stand at 0.786%, down -2.90% on the day, while the benchmark 10-year yields drop nearly -2% to trade at 1.929%. Meanwhile the US dollar index slides -0.10% to 98.95.
Markets now await a set of employment data from Germany as well as Euro zone for further momentum on the major, while the oil price action will continue to lead.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0950/51 (round number/ Jan 29 High). A break beyond the last, doors will open for a test of 1.0969/77 (Jan 28 High/ daily R2). On the flip side, the immediate support is placed at 1.0865/60 (1h 200-SMA/ 10-DMA) below which 1.0833 (daily S1/ Jan 14 Low) could be tested.
(Market News Provided by FXstreet)