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EUR/USD: Bulls rescued by rallying German yields

FXStreet (Mumbai) - The EUR/USD pair halted its downslide just ahead of 1.13 barrier and now consolidates to the downside, awaiting fresh triggers from the US open.

EUR/USD breaks below all major hourly MAs

The EUR/USD pair drops -0.23% to 1.1321, recovering from fresh session lows reached at 1.1309 in last hours. The major retreats slightly from lows as the greenback recedes gains versus its major competitors. The USD index rose as high as 94.98 and now retraces to 94.89, up 0.14% so far.

However, the downside remains cushioned in the major largely on the back of rallying German yields which comes to the rescue of the EUR bulls. The benchmark 10-year yields on the German bunds now rallies 3% to 0.566%.

In the day ahead, markets await Fed speaks from FOMC member Lael Brainard and Jeffrey Lacker, while ECB monetary policy on Thursday remains the main highlight this week.

EUR/USD Technical Levels

The pair struggles below the h1 50-SMA at 1.1377 which acts as the immediate resistance, beyond which 1.1398/1.1400 (h1 100-SMA & round number) would be retested and from there to 1.1413 (Oct 13 High). While the immediate support is located at 1.1340/33 (today’s low & Oct 16 low), a breach of the last would expose 1.1300 (psychological levels), below which floors open for a test of 1.1277 (50-DMA).

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