EUR/USD Regains Bid Tone as Stoxx 50 Futures Drop 1%
EUR/USD has regained bid tone and is eyeing 1.14 handle amid signs that risk aversion in Asia has hit European shores.
Weak stocks to support EUR
The pan-European Euro Stoxx 50 futures are indicating the major indices are likely to open 1% lower today. The resulting carry unwind is seen favoring the common currency. Slide in Japan’s Nikkei did help the pair recover from daily low of 1.1367.
The spot now trades around 1.1384 levels. Apart from the stock market action, the pair may also take cues from the manufacturing PMI releases across the Eurozone. Later today, non-farm payrolls figure is due for release.
EUR/USD Technical Levels
The immediate hurdle is seen at 1.14, followed by a stiff barrier at 1.1418 (23.6% of Mar 2015 low-Aug 2015 high), which if breached would open doors for 1.1460 (Sep 18 high). Conversely, a breakdown of support at 1.1376 (Feb 11 low) would expose 1.1342 (Mar 17 high) and 1.13 levels.
(Market News Provided by FXstreet)
