10 Jun 2015
EUR/USD drops below 1.13, breaches key Fib support
FXStreet (Mumbai) - The EUR/USD pair almost entirely erased its daily gains and fell below 1.13 levels amid empty data docket and strength in the German yields.
Drops below key Fib level
A key technical level of 1.1293 (23.6% Fib R of 1.3991-1.0461) is breached, after having declined from the high of 1.1384 levels earlier today. The sharp rise in the pair seen earlier was mainly driven by a rise in the 10-year German Bund yield above 1.00%.
However, the gains could not last long since the US-German 10-year yield spread has improved significantly in favor of the EUR. It now stands at 148 basis points, largely unchanged from the previous session. Ahead in the day, the markets could focus on the meeting between Tsipras, Merkel and Holland after EU officials termed the recent Greek proposals as insufficient.
EUR/USD Technical Levels
The pair currently trades at 1.1283. The immediate resistance is located 1.1344, above which the pair could re-test 1.1384. On the flip side, a break below 1.1280 could drive the pair lower to 1.1228.
Drops below key Fib level
A key technical level of 1.1293 (23.6% Fib R of 1.3991-1.0461) is breached, after having declined from the high of 1.1384 levels earlier today. The sharp rise in the pair seen earlier was mainly driven by a rise in the 10-year German Bund yield above 1.00%.
However, the gains could not last long since the US-German 10-year yield spread has improved significantly in favor of the EUR. It now stands at 148 basis points, largely unchanged from the previous session. Ahead in the day, the markets could focus on the meeting between Tsipras, Merkel and Holland after EU officials termed the recent Greek proposals as insufficient.
EUR/USD Technical Levels
The pair currently trades at 1.1283. The immediate resistance is located 1.1344, above which the pair could re-test 1.1384. On the flip side, a break below 1.1280 could drive the pair lower to 1.1228.