EUR/USD trims gains even as Asian stocks clock 29-month high

EUR/USD faces rejection at 1.1930 despite risk-on in Asian equities.
Record bullish positioning makes the EUR vulnerable to sudden pullbacks.
An above-forecast Germany preliminary CPI number is needed to restore the recent uptrend.

Omkar Godbole FXStreet Contributor

EUR/USD is now trading near 1.1910, having clocked a high of 1.1930 during the Asian trading hours.

The pair has pulled back from 1.1930 despite the risk-on action in the Asian stock markets. According to Reuters, the MSCI's broadest index of Asia-Pacific shares outside Japan is trading at the highest since March 2018. Japanese stocks have also gained 1%.

The risk sentiment seems to have been buoyed by the better-than-expected China Manufacturing and Non-Manufacturing PMI numbers for August and the Federal Reserve's recent decision to adopt a more relaxed approach to controlling inflation. Even so, the safe-haven dollar is showing some resilience.

One possible reason for the lack of convincing move higher in EUR/USD could be the extreme bullish positioning in the market. Speculators increased their bullish bets on the common currency by 14,809 contracts to a new all-time high of 211,752 contracts in the week ended Aug. 25, the data released on Friday showed.

The record bullish positioning makes the currency pair vulnerable to a sudden pullback. However, a more substantial buying pressure may emerge, lifting the currency pair to recent highs above 1.1960 if the preliminary German consumer price index for August, due at 12:00 GMT on Monday, beats estimates.

Technical levels

EUR/USD

Overview
Today last price	1.1911
Today Daily Change	0.0007
Today Daily Change %	0.06
Today daily open	1.1904

Trends
Daily SMA20	1.1824
Daily SMA50	1.1582
Daily SMA100	1.1292
Daily SMA200	1.1164

Levels
Previous Daily High	1.192
Previous Daily Low	1.1811
Previous Weekly High	1.192
Previous Weekly Low	1.1762
Previous Monthly High	1.1909
Previous Monthly Low	1.1185
Daily Fibonacci 38.2%	1.1878
Daily Fibonacci 61.8%	1.1853
Daily Pivot Point S1	1.1837
Daily Pivot Point S2	1.1769
Daily Pivot Point S3	1.1728
Daily Pivot Point R1	1.1945
Daily Pivot Point R2	1.1987
Daily Pivot Point R3	1.2054

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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