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EUR/USD re-takes 1.1300 as European stocks tumble

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The EUR/USD pair tries to regain lost footing and heads for a retest of 1.13 handle as the risk-off moods intensified after the European stocks fell back into the negative territory.

    EUR/USD finds support from negative equities

    Currently, EUR/USD trades 0.05% higher at 1.1297, recovering from a brief dip to session lows reached at 1.1275 last hours. The main currency pair caught a fresh bid tone as the euro jumped back on the bids after the European stocks snapped the previous rebound and fell sharply lower in the opening trades, reinforcing risk-off sentiment into markets.

    Moreover, the oil prices also fell deeper in the red, with the US oil heading towards multi-year lows, also added to the negative sentiment and boosted the demand for the safe-haven EUR. Further, the greenback keeps mild losses against its major competitors, which also collaborates to the upside in the EUR/USD pair.

    Meanwhile, the major will continue to track the risk-off sentiment dominating the global equities ahead of the US weekly unemployment claims data due later in the NY session and round 2 of Yellen’s testimony.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1320/44 (daily high/ daily R1). A break beyond the last, doors will open for a test of 1.1400 (round number). On the flip side, the immediate support is placed at 1.1270/65 (1h 20 & 50-SMA) below which at 1.1217/00 (1h 100-SMA/ psychological levels) could be tested.
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