EUR/USD looks to regain 1.1200 as US Treasury yields sell-off intensifies


  • Fed rate cut triggers risk-off, 10-year Treasury yields hit record lows.
  • USD remains weaker amid rising coronavirus deaths in the US.  
  • Focus on likely ECB rate cut and virus updates for fresh moves.

Having found buyers near 1.1150 region EUR/USD is heading back towards the two-month high of 1.1212, as the wipeout in the US Treasury yields seems to be boding well for the euro.

The US benchmark 10-year Treasury yields hit a record low below 1.0%, as markets remain wary whether the US Federal Reserve (Fed) unexpected 50bps rate cut would be effective enough to combat the negative impact of the coronavirus on the economy.

Markets ran for cover in the US bonds, thereby, hammering the US rates by over 15% so far. The crash keeps the US dollar broadly under pressure, with the US dollar index meandering near two-month lows of 97.00.

With the rising coronavirus deaths in the US and investors assessing the impact of the massive rate cut by the Fed, the sentiment is likely to remain sour and poses further upside risks to the EUR/USD pair going forward.

Meanwhile, the Eurozone Preliminary CPI data came in line with estimates but failed to have any impact on the shared currency, as the major remains at the mercy of the risk trends amid looming coronavirus risks.

EUR/USD technical levels to consider

EUR/USD

Overview
Today last price 1.1187
Today Daily Change 0.0053
Today Daily Change % 0.48
Today daily open 1.1136
 
Trends
Daily SMA20 1.0911
Daily SMA50 1.1032
Daily SMA100 1.1057
Daily SMA200 1.1099
 
Levels
Previous Daily High 1.1185
Previous Daily Low 1.1027
Previous Weekly High 1.1053
Previous Weekly Low 1.0805
Previous Monthly High 1.1089
Previous Monthly Low 1.0778
Daily Fibonacci 38.2% 1.1125
Daily Fibonacci 61.8% 1.1087
Daily Pivot Point S1 1.1047
Daily Pivot Point S2 1.0958
Daily Pivot Point S3 1.0888
Daily Pivot Point R1 1.1205
Daily Pivot Point R2 1.1274
Daily Pivot Point R3 1.1363

 

 

 

 

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