EUR/USD back below 1.13, treasuries preferred safe haven?
By FXStreet FXStreet (Mumbai) – The EUR/USD pair fell back to 1.1270 levels even though the pan-European Stoxx 600 index extended losses to trade 3% lower.
Treasury yields dropped, USD resilient amid risk aversion
The risk aversion in the equity markets pushed EUR/USD higher to 1.1332, but the carry unwind failed to push the pair higher. In fact, the bid tone on the EUR weakened, pushing the spot back to 1.1270 levels. Meanwhile, the Treasury yields have taken a hit, both on long duration as well as short duration notes. Moreover, the safe haven flows may be moving back to treasuries thereby leading to the resilience in the USD.
Ahead in the day, the spot could take cues from the US ISM manufacturing data and sentiment on the Wall Street. The mixed batch of Eurozone and German data failed to have a sizeable impact on the pair.
EUR/USD Technical Levels
The spot currently trades at 1.1275. The immediate resistance is located at 1.1330 (hourly 200-MA), above which gains could be extended to 1.14 levels. On the flip side, support is seen at 1.1272 (hourly 100-MA) and 1.1227 (hourly 50-MA).
For more information, read our latest forex news. …read more
Source:: FX Street
