EUR/USD rebounds towards 1.1350 as US dollar wilts with Treasury yields

EUR/USD benefits from weakness in USD, Treasury yields.
Growing coronavirus cases and US stimulus doubts dent risk.
Virus updates, USD dynamics to lead the way ahead of US CPI.

Dhwani Mehta FXStreet

EUR/USD jumps back on the bids and looks to retest the 1.1350 level amid unabated broad-based US dollar selling, as we progress towards the European opening bells, having stalled its corrective slide at 1.1275.

The overnight sell-off in the spot lost legs, as the bulls fought back control in Asia alongside the risk-off trades, in light of growing coronavirus cases worldwide and the US economic response disappointment.

Therefore, investors ramp up the US bond-buying that led to the renewed sell-off in the Treasury yields that ensued the dollar slide across the board. The US dollar index now trades 0.35% lower at session lows near 96.05 while the US benchmark 10-year Treasury yields are down nearly 11% at 0.675%.

On the EUR-side of the story, the risks of a recession in the Eurozone, particularly in Germany, remain high in the face of the infectious disease. Therefore, the European Central Bank (ECB) will likely resort to additional stimulus measures on Thursday to cushion the economic blow, which could very well hurt the shared currency, with the EUR/USD correction likely to resume.

In the meantime, the major will continue to watch out for the incoming virus updates and its impact on the risk sentiment and dollar trades ahead of the US CPI data due later today at 1230 GMT.

EUR/USD technical levels to watch

EUR/USD

Overview
Today last price	1.1340
Today Daily Change	0.0057
Today Daily Change %	0.51
Today daily open	1.1281

Trends
Daily SMA20	1.1
Daily SMA50	1.1045
Daily SMA100	1.1066
Daily SMA200	1.1102

Levels
Previous Daily High	1.1467
Previous Daily Low	1.1275
Previous Weekly High	1.1355
Previous Weekly Low	1.1027
Previous Monthly High	1.1089
Previous Monthly Low	1.0778
Daily Fibonacci 38.2%	1.1348
Daily Fibonacci 61.8%	1.1394
Daily Pivot Point S1	1.1215
Daily Pivot Point S2	1.1149
Daily Pivot Point S3	1.1023
Daily Pivot Point R1	1.1407
Daily Pivot Point R2	1.1533
Daily Pivot Point R3	1.1599

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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