FXStreet (Mumbai) – The shared currency found fresh bids and regained momentum versus its American rival post the European open, now pushing EUR/USD back towards daily highs.
EUR/USD supported amid falling European equities
Currently, the EUR/USD pair trades 0.52% higher at fresh session highs of 1.0966, retreating from a brief dip to fresh session lows printed at 1.0938 in the last hour. The main currency pair found renewed support from the horrid start to the European session, with the European indices drowning in the red. Hence, the negative global sentiment spurred demand for the funding currency euro. Germany’s DAX drops -2.50%, the UK’s FTSE slides -2%, while the pan-European benchmark index, the Euro Stoxx 50 sinks -2.25%.
Moreover, the major shrugged-off dismal German factory gate prices gauge and remained elevated on the back of the strengthening EUR/GBP as the cable hovers near multi-month lows ahead of the UK jobs data. Germany’s PPI index sank 2.3% y/y in Dec, while markets had predicted a 2.2% fall.
With the German PPI out of the way, attention now shifts to the US CPI report due in the NY session. The US Core CPI, excluding food and energy costs, is expected to accelerate to 2.1% y/y, the fastest pace since July 2012.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0984/1.1000 (Jan 15 High/ round number). A break beyond the last, doors will open for a test of 1.1050/59 (Dec 14 & 15 High). On the flip side, the immediate support is placed at 1.0905 (Daily Low), below which 1.0866/ 60 (Jan 19 Low/ 50-DMA) could be tested.
(Market News Provided by FXstreet)