EUR/USD feels the pull of gravity amid risk reset, ahead of Eurozone PMIs

EUR/USD is losing altitude amid risk reset in the financial markets.
Coronavirus scare has eased with China's decision to inject liquidity.
All eyes remain on Eurozone data, ECB Lagarde’s speech and US PMIs.

Omkar Godbole FXStreet Contributor

Amid risk reset, the EUR/USD pair is currently trading near 1.1034, down 0.10% on the day, having faced rejection near 1.11 on Monday.

Risk rebound

Global equities picked up a strong bid on Tuesday as China's $174 billion liquidity injection eased fears about the negative effects of the coronavirus outbreak on both the Chinese and the global economy.

Notably, the S&P 500 index rose more than 1.5% and the Nasdaq Composite Index printed a record close. The US 10-year yield also rallied from 1.52% to 1.61%, strengthening the bid tone around the US dollar.

The Asian stocks also eked out solid gains on Wednesday. Also, oil benchmarks are reporting a 1 percent gain at press time.

With risk sentiment strengthening, the treasury yields are likely to extend Tuesday's gains. EUR/USD, therefore, risks falling to 1.10. However, the downside pressures may weaken if the German PMI numbers and Eurozone Retail Sales beat expectations by a big margin.

Across the pond, ADP Employment Change (Jan) will take center stage along with the trade balance figure.

Technical bias

"The risk is skewed to the downside, but the pair would need to break below 1.1020 to increase its bearish potential," according to FXStreet's Valeria Bednarik.

Technical levels

EUR/USD

Overview
Today last price	1.1034
Today Daily Change	-0.0010
Today Daily Change %	-0.09
Today daily open	1.1044

Trends
Daily SMA20	1.1081
Daily SMA50	1.1102
Daily SMA100	1.1072
Daily SMA200	1.1127

Levels
Previous Daily High	1.1064
Previous Daily Low	1.1033
Previous Weekly High	1.1092
Previous Weekly Low	1.0992
Previous Monthly High	1.1225
Previous Monthly Low	1.0992
Daily Fibonacci 38.2%	1.1045
Daily Fibonacci 61.8%	1.1052
Daily Pivot Point S1	1.103
Daily Pivot Point S2	1.1016
Daily Pivot Point S3	1.0999
Daily Pivot Point R1	1.1061
Daily Pivot Point R2	1.1078
Daily Pivot Point R3	1.1092

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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