FXStreet (Mumbai) – The common currency continues to strengthen on the back of a rise in Bund yields, taking the EUR/USD pair to a fresh three-week high of 1.1384 levels.
EUR gains on favorable yield spread
The shared currency continues to move higher on the back of a favorable 10-year US-German yield spread, which currently hovers at 145 basis points. The spread has declined steadily from 157 basis points seen on Friday.
Moreover, the German 10-year Bund yield rose to a high of 1.005%, its highest since September 2014. Consequently, the pair continued to take out offers at critical technical levels, to print a high of 1.1384.
EUR/USD Technical Levels
The immediate resistance is seen at 1.14, above which gains could be extended to 1.1465. On the flip side, a break below 1.1350 could see the pair re-test 1.1293 levels.
(Market News Provided by FXstreet)