EUR/USD registers its first five-day losing streak in three months

EUR/USD fell 0.10% on Monday, confirming the first five-day losing streak in three months.
EUR/USD dropped even though the German Bund yields ticked higher on stimulus talk.
Markets are likely worried that the German stimulus may not be strong enough to counter the economic slowdown.
A sustained rise in Germa yields may help the EUR end the five-day losing streak.

Omkar Godbole FXStreet Contributor

EUR/USD fell for the fifth straight trading day on Monday despite the uptick in the German bond yields.

The currency pair dropped 0.10% on Monday, having registered 0.38%, 0.29%, 0.28% and 0.15% losses on Tuesday, Wednesday, Thursday, and Friday, respectively.

That is the first five-day losing streak since mid-May. Back then, the pair had dropped for five straight days from May 13 to May 17.

Yields bounce on talk of German fiscal boost

The German 10-year bond yield rose more than six basis points to -0.64% on Monday on reports of German willingness to increase fiscal spending in order to support the struggling economy. The German government could come up with $55 billion (€50 billion) in the stimulus should the country's economy fall on hard times, German Finance Minister Olaf Scholz said in Berlin on Sunday, according to Bloomberg News.

The EUR/USD pair rose above 1.11 in the European trading hours on Monday, tracking the rise in the yields, only to end the day on a negative note at 1.1078.

EUR's inability to score gains despite the recovery in yields likely indicates concerns that Germany's stimulus, if any, will not be enough to buttress the economy.

So, while the path of least resistance remains to the downside, the common currency may end up snapping the five-day losing streak with moderate gains if the German yields continue to rise today. As of writing, EUR/USD is trading at 1.1087, representing 0.10% gains on the day.

An above-forecast German producer price index for July may strengthen the bid tone around the EUR. The data is scheduled for release at 06:00 GMT.

Technical levels

EUR/USD

Overview
Today last price	1.1087
Today Daily Change	0.0009
Today Daily Change %	0.10
Today daily open	1.1078

Trends
Daily SMA20	1.1146
Daily SMA50	1.1223
Daily SMA100	1.1219
Daily SMA200	1.129

Levels
Previous Daily High	1.1114
Previous Daily Low	1.1076
Previous Weekly High	1.1232
Previous Weekly Low	1.1066
Previous Monthly High	1.1373
Previous Monthly Low	1.106
Daily Fibonacci 38.2%	1.1091
Daily Fibonacci 61.8%	1.1099
Daily Pivot Point S1	1.1065
Daily Pivot Point S2	1.1052
Daily Pivot Point S3	1.1027
Daily Pivot Point R1	1.1103
Daily Pivot Point R2	1.1127
Daily Pivot Point R3	1.114

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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