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EUR/USD makes new weekly lows near 1.0950

  • Rise in Treasury bond yields favors the dollar.
  • EUR/USD hits one-week lows but manages to rebound quickly.
  • Caution in markets, data ahead; no progress for Ukraine.

The EUR/USD recently fell to 1.0954, hit a new one-week low. It then bounced back into the consolidation range of the last few hours around 1.0970. The pair is validating recent losses, still holding above 1.0950.

The dollar is supported by the rise in Treasury bond yields. The 10-year US bond rate hit as high as 2.47%, the highest in nearly a week.

The economic calendar shows US data ahead for Tuesday, among which those of the services sector stand out with the ISM for March. In the Eurozone the final readings of the Markit PMI (now S&P Global) showed an unexpected upward revision with respect to the preliminary reading. The Eurozone index went from 54.5 (preliminary) to 55.6.

Expectations about monetary policies will continue to play an important role. This week the minutes of the last meeting will be published, both of the FOMC as of the governing board of the European Central Bank. Before that, FOMC Governor Lael Braindard and New York Fed President John Williams will speak on Tuesday.

Support at 1.0950

EUR/USD remains above 1.0950 which is a key level. The current bias is bearish, but as long as it remains above 1.0950, a bounce could be expected; should it fall below, the euro would be vulnerable to further losses. With the next support at 1.0925 and then at 1.0900.

To ease downside pressures, EUR/USD needs to break above 1.1040 firmly to generate anticipation of possible further gains.

Technical levels

Source: Fx Street

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