EUR/USD looks to extend the rebound from 1.2170

The pair is attempting prolong the bounce off fresh lows near 1.2170.
The 1.2165/55 band emerges now as the next relevant support area.
Higher greenback and yields keep fuelling the pair’s downside.

Pablo Piovano FXStreet

The continuation of the up move in the greenback continues to weigh on EUR/USD today, dragging it to fresh lows in the 1.2170 region.

EUR/USD now looks to 1.2165/55

The pair remains depressed during the first half of the week and is extending the leg lower to the 1.2170 region, trading at shouting distance from the critical contention area in the 1.2165/55 band. This area is considered the last defense ahead of a potential test of the key 200-day sma, today around 1.20 the figure.

Furthermore, EUR stays on the defensive, down for the second consecutive week so far and challenging the lower bound of the consolidative range prevailing pretty much since the start of the year at 1.2155/1.2555.

The sharp pick up in yields of the US 10-year note plus, in a lesser degree, disappointing results from the docket in Euroland as of late has been collaborating with the renewed bearish prospects on the pair.

In addition, and putting the European currency under potential extra pressure, the ECB is expected to deliver a somewhat dovish tone at its meeting tomorrow.

EUR/USD levels to watch

At the moment, the pair is losing 0.40% at 1.2184 facing immediate contention at 1.2170 (low Apr.25) 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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