FXStreet (Mumbai) – The EUR/USD pair picked-up significant strength over the last hours and bounced sharply to session highs near 1.0880 region, as mixed Asian equities provide the much-needed respite to the EUR bulls.
EUR/USD bounces-off lows near hourly 100-SMA at 1.0848
Currently, the EUR/USD pair trades 0.22% higher at 1.0881, hovering close to fresh session highs printed at 1.0884 few minutes ago. The main currency pair ran through fresh bids and breathed a sigh of relief as the safe-haven status for the euro got a boost after a renewed bout risk aversion that hit Asia, with the major Asian indices turning negative, while the Chinese equities continue to wobble.
Adding to the upbeat sentiment around the EUR/USD pair, the US dollar faced renewed headwinds after the Dallas Fed Chief Kaplan raised concerns over further rate increase by the Fed in 2016 earlier on the day. Mr. Kaplan noted, “Four hikes not a sure thing in 2016.” The US dollar index now drops -0.15% to 98.77 levels.
In the day ahead, the EUR calendar remains absolutely data-empty and hence the focus is likely to remain on the sentiment on the global equities and the oil price action.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0900/07 (round number/ 5-DMA) A break beyond the last, doors will open for a test of 1.0970/72 (Jan 11 High/ 100-DMA). On the flip side, the immediate support is placed at 1.0848/41 (1h 100-SMA/ daily low), below which 1.0825 (50-DMA) could be tested.
(Market News Provided by FXstreet)