EUR/USD holds above 1.09, focus on risk assets

EUR/USD is hovering at 1.0915, having hit a low of 1.0891 on Tuesday.
Powell's upbeat comments likely weakened the haven demand for US dollar.
Notable bounce may remain elusive if the Eurozone data prints below estimates.

Omkar Godbole FXStreet Contributor

EUR/USD is holding above 1.09, having found takers below the psychological support on Tuesday.

The EUR and most other currencies gained ground against the US dollar during the North American session as Federal Reserve's Chairman Jerome Powell downplayed the coronavirus impact on the US economy, fueling a move higher in the equities.

The risk sentiment was also boosted by Chinese President Xi's comments that his country would win the battle against the virus and be more prosperous afterward.

Powell will be testifying again before Senate on Wednesday and will likely reiterate what he said on Tuesday.

The single currency will remain better bid if the equities continue to gain altitude on the notion that the coronavirus contagion rate is slowing. The risk currencies like the NZD and the AUD picked up a bid in Asia and are reporting solid gains at press time.

However, if the Eurozone industrial production tanks more-than-expected, the single currency may buck the risk-on trend in equities and commodity dollars and revisit support at 1.0879 (Oct. 1 low).

Technical levels

EUR/USD

Overview
Today last price	1.0916
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	1.092

Trends
Daily SMA20	1.1039
Daily SMA50	1.1093
Daily SMA100	1.1069
Daily SMA200	1.1121

Levels
Previous Daily High	1.0925
Previous Daily Low	1.0891
Previous Weekly High	1.1089
Previous Weekly Low	1.0942
Previous Monthly High	1.1225
Previous Monthly Low	1.0992
Daily Fibonacci 38.2%	1.0912
Daily Fibonacci 61.8%	1.0904
Daily Pivot Point S1	1.0899
Daily Pivot Point S2	1.0878
Daily Pivot Point S3	1.0865
Daily Pivot Point R1	1.0933
Daily Pivot Point R2	1.0946
Daily Pivot Point R3	1.0967

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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