EUR/USD dips to 1.1475 as risk-aversion vanishes

FXStreet (Mumbai) - The shared currency erased gains and extends further in to the negative territory versus the American dollar, knocking-off EUR/USD to fresh session lows below 1.15 handle, as the USD bulls jumped back in to bids on rising appetite for risk after Chinese markets snapped its recent bearish tone and swung back higher calming unnerved investors.

EUR/USD drops from 1.1561

The EUR/USD pair trades -0.34% lower at fresh session lows of 1.1477, failing to resist 1.15 barrier. The major ran through fresh sellers in the early European trades amid rebound in the risk sentiment after markets enjoy gains on Asian indices including the Chinese stocks as PBOC latest move yielding positive results.

Moreover, the US dollar rebounded sharply versus its major peers in the Asian session as markets cheered the latest series of upbeat US fundamentals – home sales, services PMI and the key consumer confidence figures.

Looking ahead, the main currency pair is likely to track USD moves as the New York session hold the much awaited consumer durable goods data from the US which may major impact on the US currency.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1561 (Today’s High), above which gains could be extended to 1.1625 (Aug 25 High) levels. On the flip side, support is seen at 1.1450 (Psychological Levels) below which it could extend losses to 1.1396 (Aug 25 Low) levels.

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