EUR / USD remains under pressure below the 1.1300 zone

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  • The EUR / USD pair fell back to the 1.1270 zone on Tuesday.
  • Higher yields support another bullish move in the dollar.
  • The US manufacturing ISM hit 58.7 in December.

The European currency remains under pressure and drags the EUR/USD to fresh multi-day lows at the 1.1275 / 70 zone on Tuesday.

EUR / USD weakened by US yields

The EUR / USD has fallen for the second consecutive session and prolongs the pessimism seen at the beginning of the week / year, always supported by the strong resumption of the preference for the dollar.

Indeed, the dollar regained bullish momentum in response to the strong rally in US yields along the curve, where the 10-year yield manages to approach the 1.70% barrier and the 30-year Treasury yield it is trading well above the 2.00% level.

On the calendar, German retail sales expanded 0.6% monthly in November and contracted 0.2% in the last twelve months, while the change in unemployment fell by 23,000 people and the unemployment rate fell to 5.2, all for the month of December.

On the US agenda, the manufacturing ISM surprised to the downside with 58.7 last month.

Technical levels

So far, the pair is shedding 0.08% at 1.1285 and faces the next bullish barrier at 1.1386 (November 30 monthly high) followed by 1.1464 (November 15 weekly high) and finally 1.1520 (200-week SMA). On the other hand, a break below 1.1272 (weekly low on Jan 4) would target 1.1221 (weekly low on Dec 15) en route to 1.1186 (low on Nov 24, 2021).

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