EUR/USD at session lows as Stoxx 50 index gains 1.8%

Risk-on sentiment hit the European shores pushing the Stoxx 50 index higher by 1.8% and EUR/USD to a session low of 1.1342 levels.

Challenging previous cyclical high

Pair is threatening to drop below the previous cyclical high of 1.1342 (Mar 17 high). Prices have tested bids around the same at least four times since the start of the current month but failed to cut through the same.

Another attempt is being made today amid a 1.8% rise in the Stoxx 50 index. China’s exports rose more than expected and triggered a wave of risk-on buying in Asia and which is now being extended in Europe.

The spot currently trades around 1.1348. The focus is likely to be on stock market activity and EZ industrial production figure.

EUR/USD Technical Levels

The immediate hurdle is noted at 1.14, which if taken out could see spot test supply in the recent resistance zone of 1.1450-1.1460. Beyond the same, next major hurdle is seen at 1.15. On the other hand, acceptance below 1.1342(Mar 17 high) would expose 1.13, under which prices may test support at 1.1245 (Feb 5 high).