EUR/USD: Uptick in Asian stocks alleviates bearish pressure

• The uptick in Asian stocks weakens haven bid for USD, allows a minor rise in EUR/USD.
• Expectations for additional easing in China and gains in Asian stocks fail to lift JPY crosses. 

EUR/USD is looking to chalk out gains amid the uptick in the Asian stock markets. 

The pair is currently trading near 1.1212, representing a marginal rise on the day, having defended the psychological support at 1.12 during the Asian trading hours.

Asian stocks are flashing green, possibly on hopes that the monetary and fiscal lifelines launched by authorities across the globe would help the global economy absorb additional shocks from a potential second wave of the coronavirus outbreak. 

Expectations for more monetary stimulus out of China could also be helping the Asian stocks stay bid. China's State Council on Friday signaled that the central bank will act to make more liquidity available to banks so they can lend more. The liquidity-boosting measures would include cutting the amount of money that banks must keep in reserve.

The moderate risk-on is likely weighing over the safe-haven US dollar and pushing EUR/USD higher. The greenback was better bid in the previous three trading days with forex markets trading risk-averse in response to China's decision to impose lockdown in Beijing, skyrocketing virus cases in the US, and tensions between India and China and North Korea and South Korea.

While Asian stocks are currently ignoring the renewed virus scare and lingering geopolitical tensions, the S&P 500 futures are struggling. That calls for caution on the part of the EUR bulls – more so, as the JPY crosses are struggling. 

Notably, the AUD/JPY pair, a barometer of risk sentiment, is flatlined around 73.30 despite the upbeat Aussie retail sales data and the uptick in the Asian stocks. The dollar will likely find bids if the European and US stocks turn lower, sending EUR/USD lower for the fourth consecutive day. The Eurozone data calendar is devoid of first-tier releases. As a result, the pair at the mercy of the broader market sentiment. 

Technical levels