FXStreet (Mumbai) – EUR/USD bounced-off lows and swung back higher towards 1.09 handle, with the European markets under scrutiny, despite opening in the green.
EUR/USD finds support near 10-DMA
Currently, the EUR/USD pair trades 0.29% lower at 1.0899, trying hard to regain 1.09 handle. The main currency pair ran through fresh bids and recovered partial losses as the funding currency in the EUR receives some respite from the tepid-bounce seen in the European stocks. Germany’s DAX gains 0.27%, the UK FTSE rises 0.35% while the pan-European benchmark, the Euro Stoxx trades marginally higher.
Moreover, the price action in the EUR/USD continues to be dominated by the risk-off/on sentiment on the European markets, with the macro releases having virtually no impact on the major. Earlier today, Germany’s industrial output decreased 0.3% in the Nov, after reporting a 0.5% growth seen in Oct. While the country’s trade surplus shrank in Nov to €20.6 billion versus €22.3 billion previous.
Looking ahead, the USD bulls are expected to remain on the bids in the anticipation of strong US jobs data later on Friday. Markets expect non-farm payrolls to add 200,000 jobs in December, while unemployment is expected to come in at 5%.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0940/42 (daily high/ hourly R2). A break beyond the last, doors will open for a test of 1.0984 (100-DMA). On the flip side, the immediate support is placed at 1.0814/11 (1h 100 & 50-SMA), below which 1.0769 (Jan 7 Low) could be tested.
(Market News Provided by FXstreet)