EUR/USD rebounds after hitting fresh lows near 1.2100 as US yields soar
- EUR/USD rebounds to 1.2130 after hitting a fresh low at 1.2108.
- US yield continues to move higher, supporting the greenback.
The EUR/USD pair dropped further amid a stronger US dollar and bottomed at 1.2108, the lowest level in two days. As of writing, it is hovering around 1.2120, attempting to move off lows but still under pressure. The greenback gained ground on the back of higher US yields.
The US Dollar Index printed fresh daily highs near 90.40 as US yields jump to fresh monthly highs. The 10-year rose to 1.429%, a new one-year high and then pulled back. The greenback gained versus G10 currencies, but it still remains in negative territory versus commodity and emerging market currencies amid an improvement in risk sentiment.
Fed’s Chair Powell is giving testimony at another committee on Wednesday. His words so far offered no surprises. Fed’s Brainard mentioned the economy is far from goals for inflations and employment in line with yesterday’s Powell comments.
EUR/USD near the 20-day SMA
From a technical perspective, the rebound in EUR/USD from the lows alleviated the bearish pressure. Sill, the euro needs to recover above 1.2160 to point to further strength. On the downside, a consolidation below 1.2110 would target the next support at 1.2080. The next support is seen at 1.2050.
On a wider perspective, while above the 20-day moving average at 1.2090, the bias is to the upside. A daily close well above 1.2150 is needed to clear the way to more gains.
Technical levels