EUR/USD testing highs near 1.0920 on German data

FXStreet (Mumbai) - The EUR/USD pair caught a fresh bid-wave on the back of a renewed bout of risk-aversion gripping the European markets, and rose once again above 100-DMA at 1.0909 on its way to daily highs.

EUR/USD struggle continues with 100-DMA

Currently, EUR/USD trades 0.21% higher at 1.0912, having hit new session highs at 1.0917 last minutes. A fresh sell-off seen in oil prices weighed negatively on the energy stocks and therefore, resulted in steeper losses in the European equities, which sparked renewed risk aversion wave across the markets and boosted the safe-haven euro. Germany’s DAX is down -1.30%, the UK FTSE drops -1.43%, while the pan-European benchmark slips -1.40%.

Adding to the upbeat sentiment around the EUR, the German employment data came in much stronger than expected with the unemployment rate falling to the lowest in 20 years at 6.2%, against 6.3% expected. Further, the data showed a drop of 20,000 unemployed persons in Jan, after the multi-month decrease to 16,000 last month.

With the German data behind, markets now focus on the Euro zone employment numbers for further momentum, while oil price action continue to drive sentiment.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.0950/51 (round number/ Jan 29 High). A break beyond the last, doors will open for a test of 1.0969/77 (Jan 28 High/ daily R2). On the flip side, the immediate support is placed at 1.0865/60 (1h 200-SMA/ 10-DMA) below which 1.0833 (daily S1/ Jan 14 Low) could be tested.