- EUR/USD extends the rally towards 200-DMA, ten-day highs.
- Rout in Treasury yields recalls the US dollar sellers, boosts EUR/USD.
- Bulls shrug-off mixed EZ data and upbeat US job openings, Fed minutes eyed.
EUR/USD is looking into build on a two-day recovery rally, as a break above the 1.1900 mark remains in sight amid a relentless fall in the US Treasury yields, which keeps the pressure intact on the dollar.
The yields on the US Treasuries were hit by the retreat in the stocks from record highs. Additionally, doubts over the prospects of a faster post-pandemic US economic recovery powered safe-haven flows into the bonds, which caused the rout in the Treasury yields to extend, pressuring the downside in the greenback.
Investors ignored the mixed Eurozone Sentix Investor Confidence Index and Unemployment rate while a rise in the US JOLTS job openings also failed to lift the dollar. Markets now look forward to the all-important FOMC minutes of the March meeting for fresh cues.
EUR/USD: Technical outlook
As observed on the daily chart, EUR/USD’s surge on Tuesday led the bulls to recapture the horizontal 21-daily moving average (DMA), then at $1857.
A daily closing above that level has offered fresh zest to the EUR bulls, as they seek to take out above the 200-DMA at 1.1890.
Acceptance above the latter could challenge the 1.1900 threshold, opening doors for a rally towards the bearish 50-DMA at 1.1976.
However, the relative strength index (RSI) still trends below the midline, currently at 49.22, warranting caution for the bulls.
EUR/USD: Daily chart
Therefore, if the price faces rejection at 200-DMA, the 21-DMA resistance now support could be retested.
The sellers will then aim for Tuesday’s low of 1.1795 below that level. Further south, the 1.1750 psychological level could be probed.
EUR/USD: Additional levels
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