The EURUSD pair has already erased half of its Tuesday’s gains and was trading 0.5% weaker ahead of the US session on Wednesday.

The key support now stands at yesterday’s lows at the 1.20 barrier, which is also the major psychological support. If the euro drops below that support, a test of February lows at 1.1950 seems very likely. 

The medium-term outlook is slowly turning bearish as US yields continue to spike higher, with the 10-year yield rising toward 1.5% again. Unless the Fed does something, we could see further volatility in the equity markets, which should benefit the safe-haven USD.

Alternatively, the pair needs to get above 1.21 for bulls to be more aggressive, with the next target in the 1.2180 region. 

The short-term outlook seems unclear as the pair is jumping up and down, but it looks like bulls are slowly leaving the market on the larger timeframes. 

Soruce: https://www.axiory.com/technical-analysis/eurusd-re-plunging-again-as-us-yields-soar

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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