30 Apr 2015
EUR/USD pops, equities drop
FXStreet (Mumbai) - With the entry of the European desks, we are witnessing a repeated pattern of a rise in the EUR/USD accompanied by a drop in the major European markets. The EUR/USD pair popped to 1.1160 levels, while the major European equities dropped 0.4% to 0.7%.
Rises above 100-DMA
The pair ran into fresh bids at the low of 1.1078 resulting in a rally that breached the 100-DMA level located at 1.1121. The pair is now approaching the previous sessions high of 1.1176. The uptick in the early European session could once again be attributed the crash in German Bunds, that has pushed the 10-year yield higher to 0.333%.
Ahead in the day, the pair is likely to be influenced by the German unemployment data and by the Eurozone CPI preliminary estimate for April.
EUR/USD Technical Levels
The immediate resistance is located at 1.1176, above which gains could be extended to 1.1243 (Feb. 27 high). On the flip side, a break below 1.1121 (100-DMA), could push the pair lower to its daily low of 1.1078.
Rises above 100-DMA
The pair ran into fresh bids at the low of 1.1078 resulting in a rally that breached the 100-DMA level located at 1.1121. The pair is now approaching the previous sessions high of 1.1176. The uptick in the early European session could once again be attributed the crash in German Bunds, that has pushed the 10-year yield higher to 0.333%.
Ahead in the day, the pair is likely to be influenced by the German unemployment data and by the Eurozone CPI preliminary estimate for April.
EUR/USD Technical Levels
The immediate resistance is located at 1.1176, above which gains could be extended to 1.1243 (Feb. 27 high). On the flip side, a break below 1.1121 (100-DMA), could push the pair lower to its daily low of 1.1078.