EUR/USD tumbles to 3-day lows as US Dollar rallies
|- EUR/USD breaks to the downside, approaching weekly lows.
- US Dollar soars across the board amid higher US yields.
The EUR/USD pair broke to the downside after moving all day sideways around 1.2370. The euro dropped decisively below 1.2355 and bottomed at 1.2327, the lowest level since Monday. The pair was holding near the lows, looking at 1.2320 (Apr 13 low).
The slide took place amid a rally of the greenback across the board. US Dollar Index futures rose in a few minutes from 89.35 to 89.59, the highest level in a week. At the same time, gold tumbled while Wall Street remained in negative territory posting modest losses.
The main driver appears to be the bond market. US bond yields accelerated the move higher during the last hours. The 10-year yield that yesterday opened at 2.82% just climbed above 2.90%. Is was at 2.93% near the year-to-date high at 2.95% and also close to the 3%.
EUR/USD Technical levels
To the downside, the immediate support could be seen at 1.2320 (weekly low) followed by 1.2305 and 1.2285. On the flip side, resistances might be located at 1.2355 (European session low), 1.2385 and 1.2400 (Apr 19 high).
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