FXStreet (Mumbai) – The safe-haven status of the shared currency received fresh impetus as risk-off sentiment gripped in Asia following the release of China’s August trade data, driving EUR/USD to fresh session highs beyond 1.1200 levels.
EUR/USD rises from 1.1161 levels
The EUR/USD rose sharply by 0.45% to fresh session highs at 1.1223, finally breaking through the 1.12 barrier. The main currency pair almost recovered Thursday’s ECB-led drop and keeps pushing higher amid fresh sell-off in Asian indices triggered by fall in Chinese exports as well imports figures, thus re-igniting risk-off moods across the financial markets.
The China benchmark index, SSEC now drops -1.38% to 3038 levels. While the Nikkei drops further to 17565, down over 1.6% on the day.
Whilst there is limited macro data to be published in the session ahead, markets will continue to digest the China news, also tracking the moves in the European indices, which is expected to influence the funding currency in the euro.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1245 (Sept 3 High), above which gains could be extended to 1.1264 (Aug 31 High) levels. On the flip side, support is seen at 1.1154 (Today’s Low) below which it could extend losses to 1.1086 (Sept 3 Low) levels.
(Market News Provided by FXstreet)