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21 Aug 2015
EUR/USD attacks 1.1300 ahead of EZ PMIs
FXStreet (Mumbai) - The shared currency continues to enjoy the safe-haven status versus the US dollar ahead of the Europe open, with EUR/USD testing the key 1.1300 barrier, as the meltdown in Asian equities and persisting geopolitical tensions spurred risk-off moods across the board.
EUR/USD at multi-week highs
The EUR/USD pair trades 0.44% higher at 1.1289, easing-off fresh 8-week highs at 1.1295 reached some minutes ago. The euro accelerated during the Asian trading on the back of its regained safe haven status fuelled by ongoing global turmoil - currency wars, China stocks rout, political tensions in the Korean Peninsula and Greece.
According to Chris Weston from IG, along with the traditional safe havens such as yen and gold, the euro also gained this status "given the current account surplus."
Moreover, persisting US dollar weakness following the recent FOMC minutes released, which lacked a clear Sept rate hike bias with concerns raised over low inflation levels, also continues to support the advances in the EUR/USD pair.
On the data space, not much has been going on this week; the first important data will be released on Friday when flash PMIs from the euro zone and from individual euro zone countries are scheduled.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1300, above which gains could be extended to 1.1348 (June 23 High) levels. On the flip side, support is seen at 1.1230 (Today’s Low) below which it could extend losses to 1.1182 (June 11 Low).
EUR/USD at multi-week highs
The EUR/USD pair trades 0.44% higher at 1.1289, easing-off fresh 8-week highs at 1.1295 reached some minutes ago. The euro accelerated during the Asian trading on the back of its regained safe haven status fuelled by ongoing global turmoil - currency wars, China stocks rout, political tensions in the Korean Peninsula and Greece.
According to Chris Weston from IG, along with the traditional safe havens such as yen and gold, the euro also gained this status "given the current account surplus."
Moreover, persisting US dollar weakness following the recent FOMC minutes released, which lacked a clear Sept rate hike bias with concerns raised over low inflation levels, also continues to support the advances in the EUR/USD pair.
On the data space, not much has been going on this week; the first important data will be released on Friday when flash PMIs from the euro zone and from individual euro zone countries are scheduled.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1300, above which gains could be extended to 1.1348 (June 23 High) levels. On the flip side, support is seen at 1.1230 (Today’s Low) below which it could extend losses to 1.1182 (June 11 Low).