FXStreet (Mumbai) – The widening of the US-German 10-year yield spread weakened the bid tone on the common currency, taking the EUR/USD pair to 1.1345 from the session high of 1.1374.
Rejected at technical resistance
The pair turned lower from the resistance range of 1.1370-1.1385 for the third time this month. Earlier this month, the pair was rejected at 1.1378 and 1.1384 on June 4 and June 10 respectively. The latest rejection was largely triggered by a larger drop in the German 10-year Bund yield, which current trades 3.9 basis points lower at 0.774%. On the other hand, the 10-year US yield is down 2.4 basis points to 2.284%.
Ahead in the day, the traders could continue to track the yield spread, which would be heavily influenced by the news regarding Greece issue. Traders will also watch out for US weekly jobless claims, CPI data due for release today.
EUR/USD Technical Levels
The immediate support is located at 1.1293, under which losses could be extended to 1.1228. On the flip side, a break above 1.1384 could see the pair target 1.1465.
(Market News Provided by FXstreet)