- The US dollar finds support after a drop in share prices and a rebound in yields.
- EUR / USD retreats slightly from the highs, although it is heading towards the highest close since February.
The pair EUR / USD has hit a new two-month high at 1.2233 and then it has receded slightly. After the opening bell on Wall Street it fell to 1.2205, amid a recovery in the US dollar. The dollar has trimmed initial losses, but remains under pressure.
The Dow Jones has opened at a loss, the S&P flat and the Nasdaq in positive territory, all indices are falling back from their pre-market session high. US yields have bounced higher in recent hours. The 10-year yield has risen from 1.63% to 1.65% in a few minutes, reaching the highest since May 14.
The outlook still points to the upside
Higher yields and a deterioration in risk sentiment have helped the dollar, which has trimmed losses across the board. Despite the downward correction, EUR / USD is still heading towards the highest close since early January.
As long as you stay above 1.2200, the positive tone will remain intact. A fall below 1.2165 it could point to a deeper correction. On the upside, resistance levels could be seen at 1.2230 Y 1.2240/45 (February highs).
EUR / USD technical levels
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