EUR/USD finds support from weaker treasury yields, Ifo eyed
The EUR/USD pair tries hard to build on Friday’s recovery, although finds some from broad based US dollar weakness in tandem with weaker US treasury yields.
EUR/USD hovers around 5-DMA at 1.0461
Currently, EUR/USD trades modestly higher at 1.0458, unable to chew offers lined up near 1.0470 region. The main currency pair clung on to 1.04 support on Friday, and from there staged a steady recovery back above 1.0450 levels, while the recovery gained extra legs in the Asian trades this Monday, mainly driven by fresh selling seen in the US treasury yields, particularly the 2-year yields, which mimics the interest rates expectations.
However, the recovery appears to lack momentum amid slightly better risk conditions prevalent in Asia, with positive oil prices and higher Asian indices. Markets look past Fed’s hawkishness witnessed last week, as attention turns towards the fundamentals, with the German Ifo business climate and Buba monthly report next on tap today.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0477 (post-FOMC high). A break beyond the last, doors will open for a test of 1.0500 (round figure) and from there to 1.0529 (10-DMA). On the flip side, the immediate support is placed at 1.0400 (round number) below which 1.0366 (14-yr low) and 1.0300 (key support) could be tested.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
