The common currency is being offered in Europe, pushing the EUR/USD pair to a session low of 1.1177 levels on account of the uptick in the Eurozone periphery bond yields.
Periphery yields rise
The markets are once again witnessing the drop in the core (German) bond yields and a rise in the periphery- Greece, Spain and Italian bond yields. The markets fear this is an indication of Greek crisis making a comeback for the fifth year in a row.
Consequently, the EUR is unable to strengthen despite the risk-off in the equity markets. The spot currently trades around 1.1180; down 0.10% on the day. Greek 10-yr yield is up more than 10 basis points, while the German 10-yr yield is trading largely unchanged on the day.
EUR/USD Technical Levels
A break below the immediate support of the hourly 50-MA at 1.1163 would shift risk in favor of a drop to the double top neckline at 1.1088. On the other hand, resistance is seen at 1.1236 (38.2% of Mar low-Aug high) ahead of the major hurdle at 1.1293 (May 2014 high-Mar 2015 low).
(Market News Provided by FXstreet)