EUR/USD Advances Further Amid Negative Equities, 100-DMA Eyed
Having bounced from 1.1120 region in early Europe, the EUR/USD pair is seen extending the upside amid persistent risk-off market profile and a broadly lower US dollar.
EUR/USD takes-out 10-DMA at 1.1159
Currently, EUR/USD trades 0.25% higher at 1.1160, testing fresh session highs printed at 1.1162 in the last hour. The main currency pair finally broke the Asian consolidation box to the upside after the European equities joined the global sell-off and triggered a renewed risk-aversion into the markets, thus, benefiting the safe-haven EUR.
Moreover, a round of profit-taking after yesterday’s decline, heading into the ECB policy decision on interest rates, also drove the major higher. The euro-dollar pair now looks to test 100-DMA located at 1.1200 levels as markets anticipate a weaker US ISM manufacturing PMI print, which is likely to add to the losses seen in the US dollar against its major peers. Meanwhile, the USD index slides -0.26% to trade near fresh session lows struck at 95.55 levels.
Calendar-wise, we had a mixed batch of Euro area final PMI releases, with the German and UK readings having improved in May. Looking ahead, focus remains on the ECB meeting due tomorrow for fresh direction on the major.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1200 (100-DMA/ round number). A break beyond the last, doors will open for a test of 1.1234/50 (20-DMA/ psychological levels) On the flip side, the immediate support is placed at 1.1098 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.