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EUR/USD extends the bull run to… 1.1300?

Increasing risk aversion is now pushing EUR/USD higher, printing fresh highs near 1.1280 and trading at shouting distance from the key barrier at 1.1300.

EUR/USD accelerates the upside

An increasingly biased context towards the risk-off trade and the swelling selling mood now hitting the greenback are combining to lift the pair to fresh 4-month highs in the vicinity of 1.1280, while European equities drop further and US pre-market points to the Dow opening +150 pts lower.

Adding to the global unease, crude oil prices are extending their daily rout, with both barrels of West Texas Intermediate and Brent losing more than 1% around $29.30 and $32.50, respectively.

EUR/USD levels to watch

The pair is now up 0.74% at 1.1273 facing the next hurdle at 1.1300 (psychological handle) ahead of 1.1496 (high Oct.15) and finally 1.1713 (post-PBoC high Aug.24). On the other hand, a breakdown of 1.1054 (200-day sma) would open the door to 1.0966 (20-day sma) and finally 1.0899 (55-day sma).

US index futures indicate flight to safety on Wall Street

Action in the US equity index futures point to heightened risk aversion and flight to safety after the opening bell.
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JPY regains poise, USD/JPY eyes daily lows

The buying interest in the safe haven JPY spiked, pushing the pair back below 115.00 and on track to re-test daily low of 114.21 levels.
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