EUR/USD finds support from negative equities, 1.1400 back on sight?

The shared currency stalled its side-trend against its American counterpart in mid-Asia, driving EUR/USD higher towards Tuesday’s high amid risk-off market profile.

EUR/USD: Bulls struggle to extend control

Currently, EUR/USD trades +0.11% higher near fresh session highs of 1.1371, breaking higher to test Tuesday’s high at 1.1380. The main currency pair gradually extends its move higher from near 1.1350 levels and now looks to regain 1.1400 beyond a break of yesterday’s high as the poor risk conditions favour the funding currency euro. Asian equities snapped early gains and fell in the red, with the Nikkei down -0.35% and Australia’s ASX 200 index dropping -0.30%.

Moreover, continued weakness seen around the greenback versus its major peers in response fading Fed rate hike prospects this summer, also collaborates to the upside in EUR/USD.

Looking ahead, the major will gain fresh impetus from the US JOLTS jobs openings data, as the US calendar remains fairly light this Wednesday, while attention now shifts towards ECB Draghi’s speech due tomorrow in absence of any economic news from the Euroland today.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1393/1.1400 (May 6 high/ round number). A break beyond the last, doors will open for a test of 1.1450 (psychological levels) On the flip side, the immediate support is placed at 1.1306 (5-DMA/ 50-DMA) below which at 1.1281 (May 13 Low) could be tested.