FXStreet (Mumbai) – The bid tone surrounding the EUR/USD pair eased a bit in the European morning, as the major met fresh supply at the hourly 200-SMA located near 1.1365 levels.
EUR/USD holds above daily pivot
The EUR/USD pair trades 0.23% higher at 1.1352, retracing from fresh session highs recorded at 1.1365 in last hours. A sudden bout of buying interest in the EUR waned, now pushing EUR/USD slight lower towards the mid-point of 1.13 barrier.
The major found fresh bids near the hourly 20-SMA and spiked 40-pips thereon, as the demand for the euro increased as the traders turned away from the European indices. The pan-European benchmark, the Euro Stoxx 50 drops -0.72% while the German DAX declines -0.63%.
While EUR/USD remains unperturbed by the latest downbeat German PPI and Eurozone current account data. Germany’s PPI fell -0.4% m/m in Sept while Euro zone surplus declines further in August.
In the day ahead, markets shift their attention towards the US calendar and subsequent Fed speaks for further momentum. While the main focus remains the ECB meeting due on Thursday.
EUR/USD Technical Levels
The pair struggles below the h1 200-SMA located at 1.1365 which acts as the immediate resistance, beyond which 1.1384 (h1 100-SMA) would be tested and from there to 1.1400 (round number). While the immediate support is located at 1.1300 (psychological levels), a breach of the last would expose 1276 (50-DMA), below which floors open for a test of 1.1260 (daily S2).
(Market News Provided by FXstreet)