FXStreet (Mumbai) – The bearish pressure on EUR remains intact in early Europe on account of a rise in the US-German yield spread, pushing the EUR/USD pair to a fresh session low of 1.1315 levels.
Rejected at 5-DMA
The pair was rejected at 5-DMA at 1.1351 early today, following which fresh selling in Europe took the pair lower to 1.1315 levels. The European markets once again have turned positive following a soft start and that too seems to have added to the bearish pressure on the EUR.
The investors, especially EUR bulls, are likely to wait on the sidelines as markets fear dovish action from the ECB. Even the 10-yr German-US yield spread rose to 146bps from 143bps seen on Wednesday.
EUR/USD Technical Levels
The daily chart shows bearish crossover between 5-DMA and 10-DMA. At 1.1315, the immediate support is seen at 1.13 – 1.1292 (23.6% of May 2014-Mar 2015 fall), under which the spot could fall to 50-DMA at 1.1263. On the higher side, a break above 5-DMA at 1.1351 is needed to push the pair higher to the resistance zone of 1.1380-1.14.
(Market News Provided by FXstreet)