FXStreet (Mumbai) – The EUR/USD pair fell into losses to trade around 1.1350 even though the German bund yields trade near session highs as bond markets cheer developments relating to Greece.
EUR ignores US-German yield spread
The common currency is being ditched despite of a favourable US-German 10-year yield spread. The 10-year German bund yield is up 8.4 basis points, while the 10-year Treasury yield is up 6.4 basis po1ints. Consequently, the spread has improved to 148 basis points; in favour of the EUR. However, the offered tone may have strengthened on account of failure to take out technical resistance at 1.14.
Investors now await the conclusion of – ECB meeting on Greek liquidity, EU summit, and Eurogroup meeting. The preliminary Eurozone consumer confidence data could get overshadowed by the Greek related developments.
EUR/USD Technical Levels
The pair now trades at 1.1351. The immediate support is seen at 1.1293 (23.6% Fib R of 1.3991-1.0461), followed by another support at 1.1228. On the flip side, a break above 1.1402 (150% Fib E of 1.0461-1.1050-1.0519), could push the pair higher to 1.1465.
(Market News Provided by FXstreet)