Increasing risk aversion is now pushing EUR/USD higher, printing fresh highs near 1.1280 and trading at shouting distance from the key barrier at 1.1300.
EUR/USD accelerates the upside
An increasingly biased context towards the risk-off trade and the swelling selling mood now hitting the greenback are combining to lift the pair to fresh 4-month highs in the vicinity of 1.1280, while European equities drop further and US pre-market points to the Dow opening +150 pts lower.
Adding to the global unease, crude oil prices are extending their daily rout, with both barrels of West Texas Intermediate and Brent losing more than 1% around $29.30 and $32.50, respectively.
EUR/USD levels to watch
The pair is now up 0.74% at 1.1273 facing the next hurdle at 1.1300 (psychological handle) ahead of 1.1496 (high Oct.15) and finally 1.1713 (post-PBoC high Aug.24). On the other hand, a breakdown of 1.1054 (200-day sma) would open the door to 1.0966 (20-day sma) and finally 1.0899 (55-day sma).
(Market News Provided by FXstreet)