EUR/USD rebounds from 1.0610, eyes daily highs – Crypto News – Crypto News
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EUR/USD rebounds from 1.0610, eyes daily highs – Crypto News

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3 years ago

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  • Wall Street trims losses, DXY approaches daily lows.
  • Bond yields off highs, after reaching weekly highs.
  • EUR/USD remains sideways with bullish bias.

The EUR/USD has recovered 1.0611, reaching the lowest level since last Thursday and then bounced sharply to the upside, approaching daily highs as equity prices in Wall Street rebounded.

The improvement in risk sentiment sent the US Dollar down across the board. The DXY is hovering around 104.00, down by 0.25% on the day. In Wall Street, the Dow Jones is up by 0.28% and the Nasdaq falls by 0.75% (was down by more than 1% a few minutes ago).

Yields rise

US and European bond yields area higher on Tuesday, off highs. The US-year yield peaked at 3.83%, the highest in a month. The German 10-year matched the 2022 high at 2.53%. The divergence between both bonds is at levels not seen since October 2020 and is supporting the Euro.

European Central Bank Governing Council member Klaas Knot said on Tuesday he believes the central bank has only just passed the halfway point of its tightening cycle and needs to be “in there for the long game” to tame high inflation.

Looking at 1.0660/70 again

The EUR/USD is back above 1.0640 (20-hour Simple Moving Average) and approaching the 1.0660/70 resistance area. A break higher would clear the way for a test of 1.0700. The following level is the recent top at 1.0735/40. A consolidation away from 1.0620 should strengthen the bullish bias.

On the flip side, another failure around 1.0670 should suggest the consolidation range with support at 1.0580 is still in place.

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