EUR/USD Eases-Off Fresh 2016 Highs, Focus on PMIs, Draghi
The risk conditions improved over the last hours and weighed somewhat on the safe-haven euro, dragging EUR/USD lower from fresh multi-month tops.
EUR/USD supported at daily pivot (1.1460)
Currently,
EUR/USD trades +0.10% higher at 1.1466, retreating from fresh
nine-month highs reached at 1.1481 post-Tokyo open. The main currency
pair paused its five-day rally and now consolidates the upside as the
risk sentiment improves amid stabilizing Asian indices.
Although
off-highs, the major remains better bid as the US dollar remains broadly
weak as the dovish FOMC statement still weighs on the sentiment around
the greenback. At the timing of writing, the USD index trades marginally
lower at to 92.97 levels, near eight-month lows.
Earlier this
session, the EUR/USD pair jumped to the highest levels since August 2015
as a renewed bout of risk-aversion gripped markets after the Japanese
stocks opened with a 4% bearish gap, which boosted the safe-haven
currencies such as the EUR.
Next in focus for the major remains a
string of final manufacturing readings from across the Euro area
economies ahead of ECB’s Draghi’s speech scheduled later in the NY
session. While US docket offers ISM manufacturing PMI report, which may
have significant impact on the USD moves.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1481 (nine-month highs). A break beyond the last, doors will open for a test of 1.1500 (psychological levels). On the flip side, the immediate support is placed at 1.1450/41 (1h 20-SMA) below which at 1.1412/1.1388 (5-DMA/ 1h 50-SMA) could be tested.