11 Aug 2015
EUR/USD testing lows near 1.0970, PBOC-led risk-off weighs
FXStreet (Mumbai) - The single currency gave away nearly half of previous gains and extends losses versus the US dollar ahead of Europe open, with EUR/USD miring in lows below 1.10 handle. The major dropped sharply lower on Tuesday as the latest PBOC move spooked market sentiments boosting safe currencies such as US dollar higher across the board.
EUR/USD back below 1.10 handle
The EUR/USD pair trades -0.43% lower at 1.0972, languishing near session lows reached at 1.0969. The EUR/USD snapped its upbeat momentum and slipped back in the red as the shared currency was hammered on PBOC yuan devaluation following the latest moves by Chinese central bank which signals the ongoing concerns over China economic slowdown, denting investors’ risk-appetite across the fx board.
On Monday, the EUR/USD pair stormed its way beyond 1.10 barrier, riding higher on optimism surrounding Greek bailout negotiations coming to an end this week, while broadly lower greenback following less hawkish Fed officials’ speeches also boosted the EUR rally.
Meanwhile, markets now turn their attention towards German ZEW and WPI data which will followed by the US data releases due later in the day for further momentum.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1032 (Today’s High) levels, above which gains could be extended to 1.1044 (Aug 10 High) levels. On the flip side, support is seen at 1.0924 (Aug 10 Low) below which it could extend losses to 1.0876 (Aug 4 Low).
EUR/USD back below 1.10 handle
The EUR/USD pair trades -0.43% lower at 1.0972, languishing near session lows reached at 1.0969. The EUR/USD snapped its upbeat momentum and slipped back in the red as the shared currency was hammered on PBOC yuan devaluation following the latest moves by Chinese central bank which signals the ongoing concerns over China economic slowdown, denting investors’ risk-appetite across the fx board.
On Monday, the EUR/USD pair stormed its way beyond 1.10 barrier, riding higher on optimism surrounding Greek bailout negotiations coming to an end this week, while broadly lower greenback following less hawkish Fed officials’ speeches also boosted the EUR rally.
Meanwhile, markets now turn their attention towards German ZEW and WPI data which will followed by the US data releases due later in the day for further momentum.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1032 (Today’s High) levels, above which gains could be extended to 1.1044 (Aug 10 High) levels. On the flip side, support is seen at 1.0924 (Aug 10 Low) below which it could extend losses to 1.0876 (Aug 4 Low).