FXStreet (Mumbai) – The EUR/USD pair is now trading in the sideways manner around the daily highs, which government bond yields across the Eurozone continue slide in anticipation of a rate cut in December.
Trades above hourly 100-MA
At 1.1065, the pair is few pips short from the daily high of 1.1076 and a few pips above hourly 100-MA located at 1.1060. The pair recovered from the low of 1.1025 seen in early Europe. Meanwhile, the bond yields across the Eurozone continue to drop, thereby capping gains in the common currency.
The 2-yr yield in Germany trades near record lows at -0.348%. Meanwhile, the benchmark 10-yr yield trades around 0.431%; down more than one basis points. The focus now is on the FOMC rate decision due later today.
EUR/USD Technical Levels
The immediate resistance is seen at 1.1088 (50% of Mar to Aug rally), above which gains could be extended to 1.1113 (200-DMA). A break above the same would expose 100-DMA at 1.1166. On the other side, support is seen at 1.1060 (hourly 100-MA) and 1.1046 (hourly 50-MA) and 1.10 levels.
(Market News Provided by FXstreet)