EUR/USD – stuck at 50% Fibo hurdle in Asia

EUR/USD is attempting gains in Asia, but is having a tough time taking out 1.1066 (50% retracement of 1.0517-1.1616) levels following Friday’s sharp losses.

Safe haven demand supports USD

Increased geopolitical uncertainty following a failed military coup in Turkey is helping the USD avoid sharp losses via increased demand for treasuries. Moreover, the treasuries are the preferred safe haven due to which EUR, despite being a funding currency, failed to strengthen on Friday.

The data calendar is light today; hence the news flow out of Turkey should continue to guide the action in the pair. The spot currently trades around 1.1063 after having clocked a high of 1.1071.

EUR/USD Technical Levels

Acceptance above 1.1066 (50% of 1.0517-1.1616) would expose 200-DMA level of 1.1089, above which prices could target 1.1131 (June 16 low). On the other hand, a breakdown of support at 1.1024 could yield 1.10 levels. A violation there would open doors for a drop to 1.0927 (61.8% of 1.0517-1.1616).