FXStreet (Mumbai) – The bid tone around the EUR keeps growing bigger heading into mid-Asian trades, with EUR/USD storming through 1.09 barrier and printing fresh three-day highs.
EUR/USD on its way to daily R1 at 1.0921
Currently, the EUR/USD pair rises 0.20% to fresh three-day highs of 1.0914, having found renewed bids near hourly 20-SMA at 1.0881. The main currency pair finally broke beyond 1.09 handle and trades firmer amid extended sell-off in the Asian equities, with China’s CPI data doing little to halt the rout.
Markets also ignored the tepid-bounce in oil prices as flight to safety remained the underlying theme in Asia, boosting the safe-haven status of the euro. While falling us treasury yields on risk-aversion weighed on the greenback, thereby driving EUR/USD higher. The 2-yr yields on the US notes drop -0.85% to 0.935% while the benchmark 10-yr yields fall -0.41% to 2.229%.
Further, with the ECB behind, the upside is likely to remain capped in light of next week’s Fed meeting. In the day ahead, amid lack of fresh fundamentals, besides the German trade balance data, the major will continue to track the sentiment on the equities.
EUR/USD Technical Levels
The pair above 1.09 handle, with the next hurdle in sight is located at 1.0958 (Dec 4 High) and from there to 1.0983 (post-ECB highs). To the downside, the immediate support is seen at 1.0858 (1h 50-SMA). Selling pressure will intensify below the last, dragging the pair towards 1.0835 (1h 100-SMA).
(Market News Provided by FXstreet)