EUR/USD under pressure despite US yield curve inversion, has charted symmetrical triangle
|- A section of the US treasury yield curve inverted yesterday.
- The inverted curve likely triggered sell-off in the US stocks.
- The American dollar remained bid despite risk-off and curve inversion.
- The Euro could revisit recent lows near 1.1215 on symmetrical triangle breakdown.
The EUR/USD pair is on the defensive, despite the treasury yield curve inversion and the risk-off in equities.
The spread between the 5- and 2-year treasury yield turned negative (inverted) yesterday. Further, the gap between 10-year and 2-year yield has narrowed to 11 basis points and could soon turn negative.
The curve inversion is likely being read as a sign of a weakening economy. This is evident from the 800 point drop in the Dow Jones Industrial Average (DJIA).
The dollar, however, remained bid against most majors and is pushing higher against the EUR at press time, which indicates the greenback is still being treated as a safe haven. As a result, the EUR/USD could be in for a deeper drop.
On the daily chart, the currency pair has charted a symmetrical triangle with support at 1.1292 and resistance at 1.1415. A break below the support would open up downside towards the recent low of 1.1315.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1325
Today Daily change: -13 pips
Today Daily change %: -0.115%
Today Daily Open: 1.1338
Trends:
Previous Daily SMA20: 1.1353
Previous Daily SMA50: 1.1434
Previous Daily SMA100: 1.1523
Previous Daily SMA200: 1.1755
Levels:
Previous Daily High: 1.1419
Previous Daily Low: 1.1318
Previous Weekly High: 1.1402
Previous Weekly Low: 1.1267
Previous Monthly High: 1.15
Previous Monthly Low: 1.1216
Previous Daily Fibonacci 38.2%: 1.1357
Previous Daily Fibonacci 61.8%: 1.138
Previous Daily Pivot Point S1: 1.1298
Previous Daily Pivot Point S2: 1.1258
Previous Daily Pivot Point S3: 1.1197
Previous Daily Pivot Point R1: 1.1398
Previous Daily Pivot Point R2: 1.1459
Previous Daily Pivot Point R3: 1.1499
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.