EUR/USD rebounds after hitting fresh lows near 1.2100 as US yields soar


  • EUR/USD rebounds to 1.2130 after hitting a fresh low at 1.2108.
  • US yield continues to move higher, supporting the greenback.

The EUR/USD pair dropped further amid a stronger US dollar and bottomed at 1.2108, the lowest level in two days. As of writing, it is hovering around 1.2120, attempting to move off lows but still under pressure.  The greenback gained ground on the back of higher US yields.

The US Dollar Index printed fresh daily highs near 90.40 as US yields jump to fresh monthly highs. The 10-year rose to 1.429%, a new one-year high and then pulled back. The greenback gained versus G10 currencies, but it still remains in negative territory versus commodity and emerging market currencies amid an improvement in risk sentiment.

Fed’s Chair Powell is giving testimony at another committee on Wednesday. His words so far offered no surprises. Fed’s Brainard mentioned the economy is far from goals for inflations and employment in line with yesterday’s Powell comments.

EUR/USD near the 20-day SMA

From a technical perspective, the rebound in EUR/USD from the lows alleviated the bearish pressure. Sill, the euro needs to recover above 1.2160 to point to further strength. On the downside, a consolidation below 1.2110 would target the next support at 1.2080. The next support is seen at 1.2050.

On a wider perspective, while above the 20-day moving average at 1.2090, the bias is to the upside. A daily close well above 1.2150 is needed to clear the way to more gains.

Technical levels

 

EUR/USD

Overview
Today last price 1.2124
Today Daily Change -0.0023
Today Daily Change % -0.19
Today daily open 1.2147
 
Trends
Daily SMA20 1.2092
Daily SMA50 1.2155
Daily SMA100 1.2015
Daily SMA200 1.1778
 
Levels
Previous Daily High 1.218
Previous Daily Low 1.2135
Previous Weekly High 1.217
Previous Weekly Low 1.2023
Previous Monthly High 1.235
Previous Monthly Low 1.2054
Daily Fibonacci 38.2% 1.2152
Daily Fibonacci 61.8% 1.2163
Daily Pivot Point S1 1.2128
Daily Pivot Point S2 1.2109
Daily Pivot Point S3 1.2083
Daily Pivot Point R1 1.2173
Daily Pivot Point R2 1.2199
Daily Pivot Point R3 1.2218

 

 

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