FXStreet (Mumbai) – The bid tone on the EUR keeps growing bigger in the European morning, now pushing EUR/USD towards the mid-point of 1.09 handle.
EUR/USD trades below hourly 100-SMA
Currently, the EUR/USD pair trades 0.12% at 1.0936, retracing from fresh session highs reached at 1.0943 few minutes ago. The main currency pair witnessed a fresh spurt of buying interest in last hours and inched slightly higher towards the hourly 100-SMA upside barrier placed at 1.0947 after the European stocks opened in the red, and now continues to extend to the downside on the back of renewed sell-off across the commodities space. Germany’s the DAX dips -0.44%, the UK’s FTSE loses -0.61% while the pan-European benchmark, the Euro Stoxx 50 drops -0.18% in opening hours.
Moreover, the shared currency ignored softer Spanish inflation numbers (0.0% versus 0.1% expected) and remains supported on the back of deteriorating risk conditions. While the greenback continues to trade lacklustre against its major peers further aiding the upside in the EUR/USD pair.
In the day head, the major will continue to track the sentiment on the European indices ahead of the US pending home sales data lined up for release later in the NY session.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.0956 region (5-DMA). A break beyond the last, doors will open for a test of 1.1000 (round number). On the flip side, the immediate support is placed at 1.0913 (1h 200-SMA), below which 1.0886 (daily S1) could be tested.
The bid tone on the EUR keeps growing bigger in the European morning, now pushing EUR/USD towards the mid-point of 1.09 handle.
(Market News Provided by FXstreet)