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EUR/USD drops to 200-DMA as European stocks rally

FXStreet (Mumbai) - The EUR/USD pair dropped to its 200-DMA located at 1.1166 levels as the risk-on in the European equities reduced demand for the funding currencies.

Trades below 50-DMA

The spot is now trading below its 50-DMA located at 1.1171 levels. The common currency lacks motivation to recover losses on account of the prevailing risk-on in the European equities. The pan-European Euro Stoxx advanced almost 1%.

Given the empty European economic calendar, the EUR/USD pair is likely to track the movement in the equities ahead of the US nonfarm payrolls report due later today.

EUR/USD Technical Levels

The immediate support is seen at 200-DMA located at 1.1166, under which the spot could target 1.11 handle. On the other side, resistance is seen at 1.1171 (50-DMA) and 1.12 levels.

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