EUR/USD retreats toward 1.2200 from fresh monthly highs near 1.2230
- US Dollar gains support from a decline in equity prices and a rebound in yields.
- EUR/USD modestly off highs, heads for the highest close since February.
The EUR/USD printed a fresh two-month high at 1.2233 and then pulled back. After Wall Street’s opening bell dropped to 1.2205, amid a recovery of the US dollar. The greenback trimmed losses, but it remains under pressure.
The Dow Jones opened with losses, the S&P flat and the Nasdaq in positive territory, all indexes off the high of the pre-market session. US yields bounced to the upside over the last hours. The 10-year yield rose from 1.63% to 1.65%, in a few minutes, reaching the highest since May 14.
Outlook still points to the upside
Higher yields and a deterioration in risk sentiment helped the greenback, that trimmed losses across the board. Despite the correction lower, EUR/USD still heads for the highest close since early January.
As long as it remains above 1.2200, the positive tone will remain intact. A decline under 1.2165 could point to a deeper correction. On the upside, resistance levels might be seen at 1.2230 and 1.2240/45 (February highs).
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
