EUR/USD above 1.11 as Stoxx 50 futures dropEUR/USD above 1.11 as Stoxx 50 futures drop
The bid tone around EUR strengthened on signs of risk-off in equities, pushing the EUR/USD above 1.11 handle and to a session high of 1.1118 levels.
Weak stocks support EUR
At the time of writing, Stoxx 50 futures were down 0.70% indicating the equity markets across Europe are likely to open on a weak note. Moreover, a 2% drop in oil could be weighing over the risk sentiment in the markets.
Hence, the common currency regained bid tone and turned positive to trade above 1.11 handle. The pair had dipped to a low of 1.1083 earlier today on the back of broad based USD demand in anticipation of hawkish surprise from Fed.
EUR/USD Technical Levels
The immediate hurdle is seen at 1.1173 (23.6% of 1.0517-1.1376), which if breached would expose 1.1218 (post ECB high) and 1.1245 (Feb 5 high). On the other hand, a breakdown of immediate support at 1.1105 (5-DMA) could see the spot test support at 1.1083 (daily low) and 1.1044 (200-DMA).
