EUR/USD flirting with key support amid risk-off

• EUR/USD remains under pressure near the 200-hour SMA support
• The risk-off tone in the Asian stocks keeps the US dollar better bid. 
• The shared currency remains at the mercy of the broader market sentiment. 
• Newsflow from Eurozone EcoFin Meeting may move the single currency.

EUR/USD is currently trading near the 200-hour moving average (MA) support located at 1.1271 amid the risk-off mood in the Asian equity markets. 

Virus concerns weigh 

As of writing, major Asian equity markets are flashing red with the Shanghai Composite reporting a 1% loss no the day and the American dollar is drawing haven bids. The risk-off could be attributed to concerns that rising coronavirus cases in the US and other parts of the world would torpedo the still-nascent economic recovery. 

In addition, investors seem worried that the US decision to sanction Chinese officials over human rights violations in Uighur province may lead to further escalation of Sino-US tensions. Also weighing over risk assets is the US Supreme Court's decision to upheld a prosecutor’s demand for President Donald Trump’s tax returns as part of a criminal investigation. 

EUR/USD has declined from 1.1290 to 1.1271 in the past few hours, extending Thursday's pullback from 1.1371. The currency pair will likely find acceptance below the 200-hour SMA support at 1.1271 if the equities continue to trade in the red. 

That looks likely as currently there is little or no positive news out there that could restore the risk sentiment. Indeed, the Eurozone bond markets have priced out the stress injected by the coronavirus outbreak in March and April. However, That positive development is currently being overshadowed by a rise in the number of virus cases. 

That said, the EUR will likely pick up a bid if the Eurozone EcoFin Meeting, due on Friday, ends on a positive note with the finance ministers moving closer to fiscal integration. 

Technical levels