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EUR/USD testing highs near 1.1370

FXStreet (Mumbai) - A renewed buying interest was witnessed around the EUR/USD pair in the early European trades, driving the major towards the daily highs reached near 1.1380 region.

EUR/USD bounces-off hourly 200-DMA

The EUR/USD pair rises 0.20% to 1.1370, hovering near fresh session highs reached at 1.1372 last minutes. The major extends its recovery from the Chinese GDP release induced drop to the hourly 200-DMA (near 1.1350) and is currently heading towards the daily highs recorded at 1.1379 in early Asia.

The EUR/USD pair edges higher this session as the risk-on sentiment spurred by the better than expected Chinese growth numbers fades, with all the Asian indices returning to the red zone. The Nikkei dives deeper in the red, -0.95% while China A50 index losing -0.32%.

Meanwhile, the pair will be influenced by the broader market sentiment in absence of no relevant economic data due today. While the trading is expected to remain light as the main focus now remains the key ECB meeting and Draghi’s words due later this week.

EUR/USD Technical Levels

The pair struggles below the h1 50-SMA at 1.1385 which acts as the immediate resistance, beyond which 1.1398/1.1400 (h1 100-SMA & round number) would be retested and from there to 1.1413 (Oct 13 High). While the immediate support is located at 1.1349/52 (today’s low & h1 200-SMA), a breach of the last would expose 1.1300 (psychological levels), below which floors open for a test of 1.1277 (50-DMA).

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