EUR/USD under pressure despite US yield curve inversion, has charted symmetrical triangle

A section of the US treasury yield curve inverted yesterday.
The inverted curve likely triggered sell-off in the US stocks.
The American dollar remained bid despite risk-off and curve inversion.
The Euro could revisit recent lows near 1.1215 on symmetrical triangle breakdown.

Omkar Godbole FXStreet Contributor

The EUR/USD pair is on the defensive, despite the treasury yield curve inversion and the risk-off in equities.

The spread between the 5- and 2-year treasury yield turned negative (inverted) yesterday. Further, the gap between 10-year and 2-year yield has narrowed to 11 basis points and could soon turn negative.

The curve inversion is likely being read as a sign of a weakening economy. This is evident from the 800 point drop in the Dow Jones Industrial Average (DJIA).

The dollar, however, remained bid against most majors and is pushing higher against the EUR at press time, which indicates the greenback is still being treated as a safe haven. As a result, the EUR/USD could be in for a deeper drop.

On the daily chart, the currency pair has charted a symmetrical triangle with support at 1.1292 and resistance at 1.1415. A break below the support would open up downside towards the recent low of 1.1315.

EUR/USD Technical Levels

EUR/USD

Overview:
    Today Last Price: 1.1325
    Today Daily change: -13 pips
    Today Daily change %: -0.115%
    Today Daily Open: 1.1338
Trends:
    Previous Daily SMA20: 1.1353
    Previous Daily SMA50: 1.1434
    Previous Daily SMA100: 1.1523
    Previous Daily SMA200: 1.1755
Levels:
    Previous Daily High: 1.1419
    Previous Daily Low: 1.1318
    Previous Weekly High: 1.1402
    Previous Weekly Low: 1.1267
    Previous Monthly High: 1.15
    Previous Monthly Low: 1.1216
    Previous Daily Fibonacci 38.2%: 1.1357
    Previous Daily Fibonacci 61.8%: 1.138
    Previous Daily Pivot Point S1: 1.1298
    Previous Daily Pivot Point S2: 1.1258
    Previous Daily Pivot Point S3: 1.1197
    Previous Daily Pivot Point R1: 1.1398
    Previous Daily Pivot Point R2: 1.1459
    Previous Daily Pivot Point R3: 1.1499

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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