- The single currency fell for the second day in a row, down 0.04%.
- US Treasury yields extend their weekly rally, closing 10 years to the 1.70% level.
- EUR / USD is biased to the downside in the near term, as the bullish move stalled around the 50, 100 and 200 hourly SMA, retreating below 1.1300.
The EUR/USD It extends its losses to two days, trading at 1.1292 at the time of writing. The dollar continues to benefit against the underperforming euro on rising US Treasury yields, led by 10-, 20- and 30-year yields, rising between 5 and 7.5 basis points to 1,682 %, 2.1180% and 2.090%, respectively.
That said, the dollar rallied after falling during the London correction, as low as 96.03, flat for the day, at 96.24. Despite the lack of movement in the dollar, market participants are beginning to position themselves for at least three rate hikes as described by US money market futures, waiting for the first lift-off once the bond reduction ends. in March 2022.
EUR / USD Price Forecast: Technical Outlook
The EUR / USD 1-hour chart shows that bears are in control, as shown by Simple Moving Averages (SMAs) that reside above the spot price. In fact, the aforementioned stopped the upward movement from 1.1276 to 1.1325, as the EUR bulls failed to capitalize on good macroeconomic data, affected by technical indicators, along with interest rate differentials between the Federal Reserve and the ECB.
On the downside, the first support would be the January 3 daily low at 1.1280. A break below that level could cause the pair to fall towards the daily S1 pivot at 1.1259, intersection with an ascending trend line drawn from the lows of the November cycle to the December lows.
Technical levels
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