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EUR/USD off lows as European stocks decline

FXStreet (Mumbai) - The EUR/USD recovered from the session lows as the European stocks headed lower, ignoring the firmer performance of the Chinese equity markets.

EUR supported by Euro Stoxx Index

The pan-European Euro Stoxx 50 equity index declined 0.74% in early trading, thereby lending support to the common currency. The Chinese markets ended in positive, despite which the European equities retreated, tracking the losses in oil and metal prices.

The risk averse sentiment in the European stocks is leading to strength in the traditional safe havens like JPY, CHF and funding currencies like the EUR. Given the absence of major market moving data out of Europe and US, the pair could track movement in the equities and comments from Fed policymakers.

EUR/USD Technical Levels

The pair recovered from the low of 1.1155 to trade around 1.1183. The immediate resistance is seen at its 200-DMA located at 1.1211, above which the spot could target 1.13 levels. On the downside, support is seen at 1.1126 (50-DMA) and 1.1017 (Aug 18 low).

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