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EUR/USD finds fresh bids at 50-DMA, rises to 1.1370

FXStreet (Mumbai) - The EUR/USD recovery from 1.1340 region extends into the early European trades, with a renewed buying wave appears to grip the shared currency amid persisting risk-off environment.

EUR/USD struggles to extend beyond daily pivot at 1.1368

Currently, the EUR/USD pair trades 0.05% higher at 1.1366, retreating slightly from fresh daily highs reached at 1.1370 in last hours. The price found fresh bids at the hourly 50-SMA and 50-DMA confluence in mid-Asia and extends higher in another attempt to conquer 1.14 barrier.

The EUR/USD pair remains on the bids as the latest China trade data reinforced risk-aversion across the financial markets with the Asian equities accelerating losses and thus supporting the demand for the safe-haven in the euro.

However, the gains are restricted in the major as markets now await the ZEW figures from Germany and the Eurozone later this session. Besides, the main currency pair will also track the sentiment on the European indices.

German ZEW Economic sentiment is expected to drop sharply to 7.0 in October from 12.1 measured in September, while the Current Situation Index is also expected to trend down to 65.8 from 67.5 in the previous month.

EUR/USD Technical Levels

The pair holds above all its daily major moving averages while the RSI remains above the mid-lines, pointing to further advances. Thus, to the upside, the major faces immediate resistance at 1.1397/1.1400 (Oct 12 High & round number), beyond which a test of 1.1442-60 (Sept 17 & 18 Highs) would become imminent. While the immediate support is located at 1.1358/ 1.1356 (hourly 50-SMA & 50-DMA), a breach of the last would expose 1.1300 (psychological levels).

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