- EUR/USD dips to 1.0707 amidst soaring US Treasury bond yields, but mixed market sentiment prevents a steeper fall.
- The pair could witness further losses if sellers successfully reclaim the 1.0700 mark, shifting the bias downward.
- Staying above 1.0700 could lead to a EUR/USD comeback, with 1.0900 in sight if key resistance levels are broken.
EUR/USD hit a new two-month low at around 1.0707, though it remains neutral to downward biased unless the pair suffers more weakness, which could send the EUR/USD sinking below the 1.0700 mark toward the 200-day Exponential Moving Average (EMA) at 1.0684. Nevertheless, a mixed market sentiment capped the Euro{s (EUR) fall, even though US Treasury bond yields skyrocketed, underpinning the US Dollar (USD). As the Asian session begins, the EUR/USD trades at 1.0727, up 0.02%.
EUR/USD Price Analysis: Technical outlook
Two days ago, the EUR/USD slumped below the 100-day Exponential Moving Average (EMA) at 1.0776, with sellers taking advantage of it, as the EUR/USD registered three straight sessions of losses. Although the pair will likely print additional losses, sellers must reclaim the 1.0700. That would leave the pair exposed, and once the EUR/USD dives below the 200-day EMA, that would shift the pair bias downwards.
That said, the EUR/USD first support would be the 2020 yearly low of 1.0636, ahead of falling to 1.0600. Break below will expose the March 15 daily low of 1.0516 before dropping to the year-to-date (YTD) low of 1.0482.
Conversely, if EUR/USD stays afloat above 1.0700, the EUR/USD could stage a comeback, initially to the 100-day EMA at 1.0776. A breach of the letter will expose 1.0800 before the EUR/USD threatens the confluence of technical indicators, like the 50 and 20-day EMAs, at around 1.0845-1.0857. Once the intersection gives way, 1.0900 is on the cards.
EUR/USD Price Action – Daily chart
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
AUD/USD rises despite stronger US Dollar, eyes on Michigan sentiment
The Australian Dollar receives support from rising commodity prices, including Gold, Steel, and Iron Ore on Friday. However, The AUD/USD pair could face pressure from a strengthening US Dollar amid growing fears of a global economic slowdown.
EUR/USD: A move to 1.1000 re-emerges on the horizon
EUR/USD enjoyed a broadly upbeat run last week, extending its strong recovery and briefly surpassing the 1.0900 handle to reach multi-month highs. Although the rally lost some momentum as the week wore on, the pair still ended with a solid performance on the weekly chart.
Gold: Bulls act on return of risk-aversion, lift XAU/USD to new record-high
Gold capitalized on safe-haven flows and set a new record high above $3,000. The Fed’s policy announcements and the revised dot plot could influence Gold’s valuation. The near-term technical outlook suggests that the bullish bias remains intact.
Week ahead: Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears.Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
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.