EUR/USD: Better bid as Gilead coronavirus drug offers hope

EUR/USD has erased a major portion of losses seen on Thursday.
Dollar is being offered on promising signs for coronavirus treatment.
Light data docket leaves the pair at the mercy of the broader market sentiment.

Omkar Godbole FXStreet Contributor

EUR/USD is reversing Thursday's losses as the greenback is on the offer amid risk-on triggered by renewed hopes for coronavirus treatment.

Euro gains 0.30%

The currency pair is trading at 1.0867 at press time, representing a 0.30% gain on the day, and has recovered nearly 50 percent of the decline from 1.0911 to 1.0817 seen Thursday.

The safe-haven American dollar is being offered across the board, as the US stock futures and the Asian equities are gaining altitude on optimism generated by the headline from STAT news that Gilead Sciences' experimental drug remdesivir is seeing rapid recoveries in fever and respiratory symptoms associated with the coronavirus.

Tentative steps to reopen the economy announced by the US President Donald Trump may be adding to bullish pressures around equities. It's worth noting that China reported a bigger-than-expected 6.8% contraction in the gross domestic product for the first quarter during the Asian trading hours. However, Gilead news overshadowed the dismal data and kept risk assets buoyed.

The market mood is likely to stay pro-risk in Europe. As a result, EUR/USD could continue to gain altitude. On the data front, the Eurozone Consumer Price Index (CPI) is due for release, while the US data calendar is light with just Baker Hughes US Oil Rig Count number expected to hit the wires at 17:00 GMT.

Technical levels

EUR/USD

Overview
Today last price	1.0867
Today Daily Change	0.0027
Today Daily Change %	0.25
Today daily open	1.084

Trends
Daily SMA20	1.0901
Daily SMA50	1.0963
Daily SMA100	1.1032
Daily SMA200	1.1055

Levels
Previous Daily High	1.0911
Previous Daily Low	1.0817
Previous Weekly High	1.0952
Previous Weekly Low	1.0768
Previous Monthly High	1.1497
Previous Monthly Low	1.0636
Daily Fibonacci 38.2%	1.0853
Daily Fibonacci 61.8%	1.0875
Daily Pivot Point S1	1.08
Daily Pivot Point S2	1.0761
Daily Pivot Point S3	1.0706
Daily Pivot Point R1	1.0895
Daily Pivot Point R2	1.0951
Daily Pivot Point R3	1.099

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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