EUR/USD bounces-off 1.1160 as treasury yields retreat
|The corrective move lower in EUR/USD pair from half-yearly highs lost legs near 1.1160 region, allowing a tepid-bounce back towards 1.1200 levels.
EUR/USD: Risk-off back in vogue?
The EUR/USD pair is seen recovering ground in the European session, as the funding currency status of the Euro received a boost from a turnaround in risk condition. Risk-aversion returns to markets after the major European indices turn negative, as the Euro group meeting gets underway. Germany’s DAX 30 index drops -0.37% to 12,591, while the Euro Stoxx 50 declines -0.35% to 3,570 points.
Moreover, the spot benefits from a retreat in the treasury yields across the curve amid risk-off, which caps the relief-rally in the US dollar versus its main competitors. The USD index eases to 97.20, after having stalled its recovery at 97.35.
Looking ahead, the pair is likely to take cues from the Fedpeaks amid a data-empty US docket. Meanwhile, Euro area flash manufacturing and services PMI reports due tomorrow will provide fresh impetus to the EUR.
EUR/USD Technical Levels
Selena Nicholas, Investment Analyst at XM notes: “Today’s move lower will eye support at 1.1100. A breakdown of this level would open the way towards 1.1000 and then target the 200-day moving average, currently around 1.0816. A firm break of this support would indicate a reversal in the medium-term uptrend that started from the January 3 low of 1.0340.”
“The sharp rise of the 50-day moving average, which looks like it is about to cross above the 200-day MA, is giving a strong bullish signal and is supportive of the medium-term bullish bias. A firm break above 1.1200 could see prices target the 1.1300 area, Selena adds.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.