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EUR/USD rises above 1.14 as greenback weakens amid falling T-bond yields

  • The 10-year T-bond yields extend slide in the early NA session.
  • US Dollar Index continues to stay below 97.
  • Coming up: Consumer confidence and house price index data from the U.S.

Following a slump toward the 1.1350 area, the EUR/USD pair gained traction in the early NA session and rose above the 1.14 mark as the falling T-bond yields brought a fresh wave of USD-selling. As of writing, the pair was trading at 1.1402, adding 0.4% on a daily basis.

Earlier today, in its monthly bulletin the ECB noted that the economic expansion was ongoing in the euro area but downside risks were increasing while reiterating that significant monetary policy stimulus was still needed. Nevertheless, markets largely ignored the ECB's publication and remained focus on the U.S. Treasury bond yields and the greenback's performance against its rivals.

After gaining more than 2% yesterday, the 10-year T-bond yield switched its direction today and was last seen losing 1.5% on the day. Pressured by this market action, the US Dollar Index, which recovered toward the 97 mark earlier in the day, continued to push lower and was last seen down 0.3% on the day at 96.72. The only data from the U.S. so far showed that weekly jobless claims decreased to 216K in the week ending December 21 from 217K.

Later in the session, the CB's consumer confidence index and the FHFA's housing price index will be looked upon for fresh impetus.

Technical levels to consider

EUR/USD

Overview:
    Today Last Price: 1.1398
    Today Daily change: 44 pips
    Today Daily change %: 0.388%
    Today Daily Open: 1.1354
Trends:
    Previous Daily SMA20: 1.1366
    Previous Daily SMA50: 1.1374
    Previous Daily SMA100: 1.1479
    Previous Daily SMA200: 1.1679
Levels:
    Previous Daily High: 1.1422
    Previous Daily Low: 1.1343
    Previous Weekly High: 1.1486
    Previous Weekly Low: 1.1302
    Previous Monthly High: 1.15
    Previous Monthly Low: 1.1216
    Previous Daily Fibonacci 38.2%: 1.1373
    Previous Daily Fibonacci 61.8%: 1.1392
    Previous Daily Pivot Point S1: 1.1324
    Previous Daily Pivot Point S2: 1.1294
    Previous Daily Pivot Point S3: 1.1246
    Previous Daily Pivot Point R1: 1.1403
    Previous Daily Pivot Point R2: 1.1451
    Previous Daily Pivot Point R3: 1.1481

  

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