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EUR/USD drops as equities rise after softer start

FXStreet (Mumbai) - The EUR/USD pair fell to 1.1350 levels as the European equities advanced after a softer start, while the treasury and German bund yields rose.

EUR ditched amid risk-on in the markets

The rise in the European equity markets, coupled with the a more than two basis points rise in the safe haven German bunds and the treasury yields indicates the markets have turned risk-on after China reported slower-than-expected drop in the GDP.

Consequently, the EUR, a funding currency, was ditched by the investors in early Europe, thereby sending the pair back to 1.1350 from the session highs around 1.1380. Ahead in the day, the broad based market sentiment could continue to guide the EUR/USD pair.

EUR/USD Technical Levels

The immediate resistance is seen at the daily high of 1.1380, above which the pair could target 1.14 followed by 1.1460 (Sep 18 high). On the other side, support is seen at 1.1343 (10-DMA) and 1.13 levels. A break below 1.13 would expose 1.1351 (50-DMA).

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