Thursday, September 10, 2015

EUR/USD drops to lows near 1.1175 as European stocks pare losses

FXStreet (Mumbai) - The persisting risk-off sentiment seems to be taking a hit during the mid-European session, with EUR/USD accelerating losses below 1.12 handle on the back of substantial recovery in the European indices.

EUR/USD surrenders 1.12 handle

The EUR/USD pair trades -0.18% lower at 1.1187, quickly retracing from fresh session lows reached at 1.1172 levels. The main currency pair failed to resist 1.12 barrier and extends its decline this session as risk-aversion fades on the back of recovery in the European stocks, which is seen restoring investors’ confidence in riskier assets.

Major European indices pared losses and seem to have stabilized, proving some respite to the European traders, thus weighing on the safe-haven bids for the euro.

Meanwhile, the German benchmark, the DAX turned positive and now trades +0.13% at 10,310, while the pan-European Stoxx trades -0.27% at 3,261.

Whilst there is nothing of relevance to be reported in the EUR calendar today, markets will closely tracking the sentiment around the European indices. While BOE Super Thursday will be watched any cross driven impact on the euro.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1245 (Today’s High), above which gains could be extended to 1.1264 (Aug 31 High) levels. On the flip side, support is seen at 1.1151 (Sept 8 Low) below which it could extend losses to 1.1086 (Sept 3 Low) levels.
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