EUR/USD slides in Asia to test 1.0650 as US Dollar bulls flex

EUR/USD bears move in for the attack as US Dollar takes off.
The bulls could be waiting at a confluence area near 1.0640.

Ross J Burland FXStreet

EUR/USD is under pressure while the US Dollar rides US Treasury yields higher in Asia which is seeing the greenback head for a third straight week of gains. At the time of writing, EUR/USD is trading at 1.06552 and has made a low of 1.0649 so far, sliding from 1.0675.

Resilient economic data out of the United States accompanied wit fresh hawkish rhetoric from Federal Reserve speakers since the Nonfarm Payrolls blowout last Friday has turned the screw on risk sentiment and has given the US Dollar a shot in the arm to 104.31 so far. US Treasury yields have also surged on the back of further hawkish rate repricing, with the two-year yields last hitting 4.679%the high. Markets are now expecting rates to peak just below 5.3% by July.

EUR/USD technical analysis

EUR/USD Price Analysis: Bears are putting up their resistances, eye 1.0650

In a prior analysis made in the the New York session, it was stated that in a ''late session surge from the bears is underway and that could leave prospects of a bearish close for another day and the downside bias underpinned:

''As illustrated, there have been three days of shorts, old and new, with the latest coming in the last hours on Wall Street.1.0650 is on the bear's radar but given the build-up of shorts, a big squeeze could come into play to end the week and to balance the books:

EUR/USD update

The -272% Fibonacci target is eyed as where the bulls could look to emerge from:

We have a confluence of a closing high here on the daily chart also.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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