FXStreet (Mumbai) – A renewed rally in the EUR/USD pair lost steam at 10-DMA, with the major stalling its recovery and now consolidates the upside in early Europe before the next leg higher.
EUR/USD holding on above 1.08 handle
Currently, EUR/USD trades 0.12% higher at 1.0846, retreating from fresh session highs of 1.0853 reached earlier in Asia. The main currency pair remains underpinned on the back of persisting uncertain global environment amid renewed China slowdown worries and resumption of the dominant downtrend in the oil prices. While sharp losses in the Chinese equities also keep the funding currency euro buoyed.
However, the upside remains capped as markets remain cautious ahead of plenty of risk events from both continents in the week ahead, with the most influential payrolls data from the US eagerly awaited. While the monetary policy divergence between the Fed and ECB also continues to keep a lid on the prices, especially after BOJ’s unexpected easing fanning hopes for ECB stimulus too at its March meeting.
Later today, a raft of final manufacturing PMI releases from across the Euro area economies, while from the US, the ISM manufacturing PMI as well core PCE price index will be reported.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0870/78 (1h 200 & 100-SMA). A break beyond the last, doors will open for a test of 1.0900/12 (round number/ 100-DMA). On the flip side, the immediate support is placed at 1.0809/00 (Jan 29 Low), below which 1.0787/86 (Jan 22 & 25 Low) could be tested.
(Market News Provided by FXstreet)