EUR/USD retreats from weekly highs, drops below 1.1950 as US yields soar


  • US yields move higher near the end of the week, helping the dollar.
  • EUR/USD’s rebound limited by 1.1970, losses momentum.

The EUR/USD pulled back sharply during the American session after hitting weekly highs at 1.1976. Higher US yields gave the dollar a boost, and the pair retreated to 1.1936.

US 10-year breaks above 1.50%

During the last hour, the 10-year Treasury yield broke above 1.50% and jumped to 1.539%. The move boosted the greenback across the board. The DXY is off lows, back above 91.70.

Despite the pullback, EUR/USD is still up on Friday (as long as it holds above 1.1925), and about post a weekly gain of near a hundred pips, the biggest since May. Still, it trades significantly below the level it had ten days ago.

A busy US calendar ahead

Analysts at ING point out that the coming week will be a big one for US data, given the Federal Reserve has indicated it is now far more open to the idea of scaling back its policy stimulus measures. “With inflation pressures looking set to remain elevated for longer than policymakers initially thought and the economy continuing to boom, the main disappointment is the slower than hoped for recovery in jobs. This will make the June US labour report the key focus for markets next week.”

Another report due next week include ISM and consumer confidence. “Both should hold at firm levels with the former again highlighting the supply chain strains that are putting up costs and boosting the chances that inflation stays higher for longer”, added ING analysts.

Technical levels

EUR/USD

Overview
Today last price 1.195
Today Daily Change 0.0018
Today Daily Change % 0.15
Today daily open 1.1932
 
Trends
Daily SMA20 1.2086
Daily SMA50 1.2097
Daily SMA100 1.203
Daily SMA200 1.1997
 
Levels
Previous Daily High 1.1956
Previous Daily Low 1.1918
Previous Weekly High 1.2147
Previous Weekly Low 1.1847
Previous Monthly High 1.2266
Previous Monthly Low 1.1986
Daily Fibonacci 38.2% 1.1941
Daily Fibonacci 61.8% 1.1932
Daily Pivot Point S1 1.1914
Daily Pivot Point S2 1.1897
Daily Pivot Point S3 1.1876
Daily Pivot Point R1 1.1953
Daily Pivot Point R2 1.1974
Daily Pivot Point R3 1.1992

 

 

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