EUR/USD fragile, finds support near 1.2190

The pair bottoming out near 1.2190, where some buyers appeared.
US 10-year yields keep the trade above the 3.0% handle.
US yields, risk sentiment to drive global markets.

Pablo Piovano FXStreet

The demand for the shared currency remains subdued on Wednesday and is now taking EUR/USD to the 1.2200 neighbourhood, where it is looking to consolidate.

EUR/USD attention to yields, risk

Spot has resumed the leg lower today, reverting yesterday’s bull run to the 1.2240/45 band and at the same time re-focusing on the key support area at 1.2165/55.

The solid performance of the greenback, in turn sustained by rising US yields, has been behind the pair’s sharp sell off from last week’s tops in levels beyond 1.2400 the figure.

In addition, mounting speculations of a dovish tone at the ECB event tomorrow keep weighing on investors’ sentiment and are limiting occasional bullish attempts.

In the data space, the only release today will be the weekly report on US crude oil supplies by the EIA.

EUR/USD levels to watch

At the moment, the pair is losing 0.19% at 1.2210 facing immediate contention at 1.2182 (low Apr.24) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.1). On the upside, a break above 1.2245 (high Apr.24) would target 1.2307 (10-day sma) en route to 1.2414 (high Apr.17).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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