24 Aug 2015
EUR/USD: Bulls storm higher to 1.1500
FXStreet (Mumbai) - The shared currency regained lost ground completely and jolted higher versus the US dollar in the European morning, with EUR/USD kissing 1.15 barrier. The bid tone around the main currency pair keeps growing bigger as European markets join the global sell-off, bolstering the safe-haven bids for the euro.
EUR/USD volatile near 1.1500
The EUR/USD pair trades 0.93% higher at 1.1490, having retested session highs near 1.1500. The European traders keep the buying interest intact around the EUR/USD pair as the demand for safe-haven assets re-emerged amid tumbling stocks on the European bourses.
Stock markets in China have been in free fall recently after the latest news signalled the Chinese economy is slowing, raising worries over the health of the world's no.2 economy, dampening market sentiment and thereby fanning risk-aversion.
Analysts at ANZ noted, "Risk off’ remains the dominant theme of currency markets, with JPY and EUR expected to continue to strengthen."
Moreover, the euro remain the main beneficiaries of the falling rate hike bets in the US as EUR/USD was oversold on the widening divergence in policies of the Federal Reserve (Fed) and the European Central Bank (ECB).
On the data front, today’s trading session remains data-empty with China fears expected to remain in focus fanning risk-off environment across the board.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1500 (Today’s High), above which gains could be extended to 1.1535 (Feb High) levels. On the flip side, support is seen at 1.1370 (Today’s Low) below which it could extend losses to 1.1329 (June 18 High).
EUR/USD volatile near 1.1500
The EUR/USD pair trades 0.93% higher at 1.1490, having retested session highs near 1.1500. The European traders keep the buying interest intact around the EUR/USD pair as the demand for safe-haven assets re-emerged amid tumbling stocks on the European bourses.
Stock markets in China have been in free fall recently after the latest news signalled the Chinese economy is slowing, raising worries over the health of the world's no.2 economy, dampening market sentiment and thereby fanning risk-aversion.
Analysts at ANZ noted, "Risk off’ remains the dominant theme of currency markets, with JPY and EUR expected to continue to strengthen."
Moreover, the euro remain the main beneficiaries of the falling rate hike bets in the US as EUR/USD was oversold on the widening divergence in policies of the Federal Reserve (Fed) and the European Central Bank (ECB).
On the data front, today’s trading session remains data-empty with China fears expected to remain in focus fanning risk-off environment across the board.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1500 (Today’s High), above which gains could be extended to 1.1535 (Feb High) levels. On the flip side, support is seen at 1.1370 (Today’s Low) below which it could extend losses to 1.1329 (June 18 High).