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EUR/USD recedes to 1.1200, European stocks flip to gains

FXStreet (Mumbai) - The bid tone on the shared currency took a hit in the European session, sending EUR/USD back near 1.12 handle, after the European stocks wiped-out losses and jumped in the green amid a data-thin macro calendar.

EUR/USD fails near 50-DMA

The EUR/USD pair trades 0.14% higher at 1.1205, retreating from fresh session highs recorded at.1220. A slight turnaround in the risk conditions after the European stocks erased losses and resumed its recent upsurge, dented the sentiment around the funding currency – the euro.

Among the major European indices, the pan-European benchmark, the Euro Stoxx 50 turned from -0.37% to +0.38% while Germany’s DAX switched to +0.30% from a 0.56%.drop.

However, the EUR/USD pair remains supported as the USD index trades -0.16% lower on the back of falling US treasury yields. The benchmark 10-year treasury yields drop -0.68% to 2.042%. While the 2-year yields on the US notes drop -1.30% to 0.601%.

Look towards the North American session, attention turns towards the ECB Draghi’s speech while the crucial US trade balance data will also bring in fresh cues for the pair.

EUR/USD Technical Levels

The pair has an immediate resistance at the confluence of 50-DMA and 20-DMA now located around 1.1227-1.1236 region, above which gains could be extended to 1.1249 (Sept 28 High) levels. On the flip side, support is seen at 1.1173 (Today’s Low), below which the next support lies at 1.1149 (Oct 2 Low). A break below the last, EUR bears will take over drowning the pair to 1.1103 (Sept 23 Low) levels.

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