9 Jun 2015
EUR stays weak at 1.1270, ignores favorable yield spread
FXStreet (Mumbai) - The common currency is trading weak heading into the US session, as the traders ignored a favorable US-German 10-year spread and pushed the EUR/USD pair to a low of 1.1251 before a minor recovery pulled it up to 1.1270.
EUR falls even though US-German yield spread narrowed
The benchmark 10-year Treasury yield and Bund yield difference or spread narrowed to 138 basis points compared to 151-152 basis points seen in the previous session. The spread had spiked to 157 basis points on Friday after the strong non-farm payrolls report in the US.
Moreover, technical sellers may have pushed the pair lower after the support at 1.1293 (23.6% Fib R of 1.3991-1.0461) was taken out. Selling in the EUR/GBP cross also weighed over the EUR/USD pair. Ahead in the day, technical factors and yield spread could continue to influence the traders along with Greece saga.
EUR/USD Technical Levels
The immediate resistance is located at 1.1293, above which gains could be extended to 1.1378 (June 4 high). On the flip side, a break below 1.1250 could see the pair target 1.12 levels.
EUR falls even though US-German yield spread narrowed
The benchmark 10-year Treasury yield and Bund yield difference or spread narrowed to 138 basis points compared to 151-152 basis points seen in the previous session. The spread had spiked to 157 basis points on Friday after the strong non-farm payrolls report in the US.
Moreover, technical sellers may have pushed the pair lower after the support at 1.1293 (23.6% Fib R of 1.3991-1.0461) was taken out. Selling in the EUR/GBP cross also weighed over the EUR/USD pair. Ahead in the day, technical factors and yield spread could continue to influence the traders along with Greece saga.
EUR/USD Technical Levels
The immediate resistance is located at 1.1293, above which gains could be extended to 1.1378 (June 4 high). On the flip side, a break below 1.1250 could see the pair target 1.12 levels.