FXStreet (Mumbai) – The EUR/USD pair keeps the green as we progress into the early European trades, as the US dollar was sold into the renewed risk-aversion wave that hit the markets during Asia.
EUR/USD eases-off fresh 3-week highs
The EUR/USD pair trades 0.05% higher at 1.1343, retracing slightly from multi-week highs reached at 1.1360 in the overnight trades. The main currency extends its side-trend, although remains supported as markets gave away riskier assets such as the US dollar in favour of the safer bets – the euro.
Over the weekend, a series of downbeat Chinese macro releases, including the retails sales, industrial output and investment numbers, added to ongoing worries over the ailing China’s economy and fuelled risk-off moods at the start of a new week.
Moreover, markets remain wary ahead of Thursday’s Fed decision, on increased speculations that the Fed rate hike could be pushed back to early 2016, thus reducing the demand for the US currency.
Looking ahead, markets now await the Euro zone industrial production data due later today. While the US calendar remains absolutely empty today, with the traders’ now shifting focus towards Tuesday’s economic releases from the US.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1360 (Today’s High), above which gains could be extended to 1.1394 (Aug 21 High) levels. On the flip side, support is seen at 1.1326 (Today’s Low) below which it could extend losses to 1.1289 (Aug 26 Low) levels.
(Market News Provided by FXstreet)