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EUR/USD shows little reaction to China rate cut news

FXStreet (Mumbai) - The EUR/USD pair continues to trade around 1.11 levels, as a minor wobble to 1.1080 levels after China rate cut news was quickly undone.

EUR around 1.11, German yields rise

The EUR has been able to restrict losses around 1.1080 levels as the German yields ticked moderately higher. However, the periphery yields are down, while the spread with US yields titled further in favor of the USD, thereby restricted gains around 1.11 handle.

China rate cut news comes a day after the ECB’s Draghi hinted at more easing in December. The news has pushed Treasury yields higher along with gold. However, commodity prices base metals and energy have not really cheered the news so far.

EUR/USD Technical Levels

The immediate resistance is located at 1.1122 (200-DMA), followed by a hurdle at 1.1174 (100-DMA). A break above the same would expose 1.12-1.1259 (50-DMA) levels. On the lower side, area around 1.1088 (50% of Mar-Aug) rally could offer support, which if taken out shall open doors for 1.1050 (Mar 26 high).

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