EUR/USD regains upside traction as Asian stocks hit record high

EUR/USD rises as the dollar drops with resilient risk sentiment.
Asian stocks reach new record highs on stimulus hopes.
The US stock market positioning looks overstreched, according to Goldman Sachs.

Omkar Godbole FXStreet Contributor

Having defended 1.21 during the early Wednesday, EUR/USD now gains altitude alongside fresh record highs in the Asian stocks.

Jumps 20 pips

EUR/USD has added 20 pips to trade above 1.2120. Sellers have consistently failed to establish a foothold below 1.21 this week even though the European Central Bank is expected to announce more stimulus this Thursday.

The latest move higher is likely the result of dollar weakness fueled by the risk-on action in the Asian equities and the futures tied to the S&P 500.

According to Reuters, MSCI's broadest index of Asia-Pacific shares outside reached a new all-time peak of 646.10 early today and is currently trading 0.5% higher on the day. The S&P 500 futures are up 0.3%. Risk assets are reportedly drawing bids in hopes that the US Congress will soon agree on a new stimulus package.

Readers should note that the bullish positioning in the US stock market looks overstretched. As such, a sudden pullback cannot be ruled out, in which case, the dollar would pick up a bid, pushing EUR/USD lower.

The Eurozone and the US data calendar is light on Wednesday, leaving the pair at the mercy of the broader market sentiment.

Technical levels

EUR/USD

Overview
Today last price	1.2121
Today Daily Change	0.0014
Today Daily Change %	0.12
Today daily open	1.2107

Trends
Daily SMA20	1.1942
Daily SMA50	1.1836
Daily SMA100	1.1815
Daily SMA200	1.1443

Levels
Previous Daily High	1.2134
Previous Daily Low	1.2095
Previous Weekly High	1.2178
Previous Weekly Low	1.1924
Previous Monthly High	1.2003
Previous Monthly Low	1.1603
Daily Fibonacci 38.2%	1.211
Daily Fibonacci 61.8%	1.2119
Daily Pivot Point S1	1.209
Daily Pivot Point S2	1.2073
Daily Pivot Point S3	1.2051
Daily Pivot Point R1	1.2129
Daily Pivot Point R2	1.2151
Daily Pivot Point R3	1.2167

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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