EUR/USD under pressure despite US yield curve inversion, has charted symmetrical triangle

• A section of the US treasury yield curve inverted yesterday.
• The inverted curve likely triggered sell-off in the US stocks.
• The American dollar remained bid despite risk-off and curve inversion.
• The Euro could revisit recent lows near 1.1215 on symmetrical triangle breakdown.

The EUR/USD pair is on the defensive, despite the treasury yield curve inversion and the risk-off in equities.

The spread between the 5- and 2-year treasury yield turned negative (inverted) yesterday. Further, the gap between 10-year and 2-year yield has narrowed to 11 basis points and could soon turn negative.

The curve inversion is likely being read as a sign of a weakening economy. This is evident from the 800 point drop in the Dow Jones Industrial Average (DJIA).

The dollar, however,  remained  bid against most majors and is pushing higher against the EUR at press time, which indicates the greenback is still being treated as a safe haven. As a result, the EUR/USD could be in for a deeper drop.

On the daily chart, the currency pair has charted a symmetrical triangle with support at 1.1292 and resistance at 1.1415. A break below the support would open up downside towards the recent low of 1.1315.

EUR/USD Technical Levels