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EUR/USD heading northwards as Stoxx futures drop

FXStreet (Mumbai) - The EUR/USD pair is heading northwards in the European session as the European stock futures point to China-led risk aversion ahead.

Hovers around hourly 50-MA

The pair currently trades near its hourly 50-MA at 1.0857 levels. The EUR, being a funding currency, strengthened in Asia and is pointing to further gains on account of the risk aversion in the equity markets. At the time of writing, the Euro Stoxx 50 futures were down 0.4%.

The action in the stock markets could continue to influence the EUR/USD pair ahead. Meanwhile, traders will also keep an eye on the third quarter Eurozone GDP, however, heightened risk aversion in Europe could see the traders ignore the data.

EUR/USD Technical Levels

At 1.0865, the immediate resistance is seen at 1.0890 (38.2% of 1.1495-1.0517), above which the gains could be extended to 1.0960 (50-DMA). On the other hand, a break below the hourly 50-MA at 1.0857 would expose 1.0808 (July 20 low).

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