EUR/USD Current Price: 1.0796
- Higher US government bond yields are backing a dollar’s rally.
- US Fed’s Bullard said they should not rule out a 75 bps rate hike.
- EUR/USD met sellers at around 1.0815 and maintains its bearish stance.
The EUR/USD pair recovered from a daily low at 1.0777 but is having a hard time sustaining gains above the 1.0800 mark. The American dollar is in a corrective decline against its European rival, overall backed by the continued cautious mood, on the back of hawkish Fed officials and geopolitical tensions.
Meanwhile, EU leaders keep discussing potential sanctions on Moscow, although an extra embargo on oil and gas divides the bloc. Some of the Union’s countries, led by Germany, are quite dependent on Russian gas and can’t afford such a decision at the time being. At the same time, Russia has been reported to produce fewer oil barrels than those agreed with fellow producers. In total, the OPEC+ produced 1.45 million bpd below targets in March.
The American dollar soared after St. Louis Fed President James Bullard said they should not rule out a 75 bps hike as the central bank needs to act rapidly against inflation. The currency corrected lower mid-European session, meeting sellers at around 1.0814.
The greenback is finding additional help in US government bond yields, as the 10-year Treasury note yielded as much as 2.913%, a multi-year high before shedding some ground, now trading at around the level. European stocks trade in the red, weighing on US futures and reflecting the poor market mood. Market players are also dropping stocks on the back of recession and inflation-related fears.
Data wise, Europe did not publish relevant data, while the US released March Building Permits and Housing Starts, up 0.4% and 0.3% respectively. Later in the session, a couple of Federal Reserve speakers will hit the wires.
EUR/USD short-term technical outlook
Technically speaking the EUR/USD pair is still on a bearish path. The daily chart shows a lower low and a lower high despite the pair is currently positive, while it keeps developing far below bearish moving averages. The Momentum indicator heads firmly lower within negative levels as the RSI indicator consolidates around 36, indicating prevalent selling interest.
In the near term, and according to the 4-hour chart, EUR/USD may resume its slide. A bearish 20 SMA rejected the early advance, while the longer ones accelerate their declines above the longer one. Technical indicators, in the meantime, have pared their early advances around their midlines, and are currently resuming their declines, hinting at another leg south.
Support levels: 1.0760 1.0720 1.0675
Resistance levels: 1.0815 1.0860 1.0920
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

EUR/USD stays strongly bid near 1.0500 on German Conservatives election win
EUR/USD stays strongly bid near 1.0500 in the European session on Monday. The pair cheers the German Conservatives Party win in the federal election, which revives hopes for better economic outlook. The further upside could remain elusive due to a cautious market mood. Germany's IFO data eyed.

GBP/USD: Gains remain capped below 1.2700 ahead of BoE-speak
GBP/USD kicks off the new week on a positive note but remains below 1.2700 in the early European trading on Monday. Broad US Dollar weakness helps the pair regain ground but the upside appears capped as traders turn cautious ahead of speeches from several BoE policymakers.

Gold price consolidates near record high; trade war fears and weaker USD favor bulls
Gold price extends its sideways consolidative price move at the start of a new week and remains confined in a multi-day-old trading range through the early European session on Monday. However, gold sits near the all-time peak touched last week amid the uncertainty surrounding Trump's trade tariffs and their impact on the global economy.

Dogecoin bears remain strong despite Elon Musk’s endorsement
Dogecoin extends its decline, trading around $0.23 on Monday after falling 8.55% last week. Coinglass’ long-to-short ratio for DOGE reads below one, indicating more traders are betting for a correction while the technical outlook projects a pullback toward the $0.20 level.

Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK
We delve into the world of money market funds. Distinct dynamics are at play in the US, eurozone, and UK. In the US, repo rates are more attractive, and bills are expected to appreciate. It's also worth noting that the Fed might cut rates more than anticipated, similar to the UK. In the eurozone, unsecured rates remain elevated.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.