EUR/USD catches fresh bid as risk-off intensifies, Draghi eyed

Having traded around a flat-line almost throughout the Asian session, the EUR/USD pair is seen catching a fresh bid-tone in early Europe, as the treasury yields are extending losses after a renewed risk-aversion wave gripped the markets.

The major flirts with daily tops near 1.0675 region, as the funding currency Euro gets a boost from persisting risk-off trades, characterized by tumbling Asian equities and rising demand for safe-havens – gold and yen.

Moreover, the US macro data released recently have been of little help to the greenback, while Tuesday’s solid manufacturing PMI reports from across the Euro area economies keeps the sentiment around the EUR somewhat buoyed.

Markets now look forward to the US factory orders and trade figures amid a data-empty EU docket, while ECB Draghi’s and FOMC member Tarullo’s speech will hog the limelight in the NA session.

EUR/USD Technical Levels   

Karen Jones, Analyst at Commerzbank explains, “EUR/USD’s near term outlook is negative: No change. The cross last week failed at its 200 day ma and sold off to its the 55 day ma at 1.0674, where it is consolidating. Rebounds from here are likely to be pretty tepid and we look for losses to the base of the short term channel at 1.0583 and please note cloud support on the daily kicks in circa 1.0625 and we suspect losses will slow. Intraday rallies are indicated to now remain capped by 1.0710/15.”