EUR/USD trades at daily lows in the 1.1920 price zone as the pair resumes its decline on roaring yields. In the view of Valeria Bednarik, Chief Analyst at FXStreet, the world’s most popular currency pair is set to approach the 1.1885 support level.
See: EUR/USD set to fall to 1.16 in 12 months as the dollar dip is transitory – Danske Bank
Key quotes
“Following a dovish US Federal Reserve announcement on Wednesday, stocks advanced, with the DJIA and the S&P reaching record highs.. But as European traders came to play, things changed. US Treasury yields hit fresh over one-year highs, with that on the 10-year note hitting 1.74%.”
“The US published Initial Jobless Claims for the week ended March 12, which missed expectations, up to 770K. The dollar continued to strengthen after the release, as yields pressure highs while Wall Street is set to open in the red.”
“The 4-hour chart shows that the risk is skewed to the downside. The pair is now about to cross below a flat 20 SMA while technical indicators resume their declines, crossing their midlines into bearish territory.”
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