“¢ Snaps six consecutive days of losing streak amid a modest USD retracement.
“¢ The USD bulls seemed unaffected by surging US bond yields/stronger US data.
The EUR/USD pair continued with its steady intraday climb from six-week lows and built on the momentum further beyond the key 1.1500 psychological mark.
Currently trading around the 1.1520-25 region, testing session tops, the pair snapped six consecutive days of losing streak and has now recovered a part of previous session steep declines amid a modest US Dollar retracement.
Despite a strong follow-through upsurge in the US Treasury bond yields, supported by expectations that the Fed might continue to raise interest rates, the USD corrective from near 1-1/2 month tops,
Even today’s better-than-expected release of the initial jobless claims data from the US failed to revive the USD demand and kept pushing the pair higher through the early North-American session.
It would now be interesting to see if the current bounce marks the end of the pair’s recent depreciating slide or is looked upon as an opportunity to sell as traders start repositioning for Friday’s closely watched US monthly jobs report (NFP).
Technical levels to watch
Immediate resistance is pegged near the 1.1545-50 region, above which the pair is likely to make a fresh attempt towards reclaiming the 1.1600 round figure mark. On the flip side, weakness back below the 1.1500 handle now seems to find support near the 1.1480-75 region, which if broken might turn the pair vulnerable to extend its near-term bearish trajectory.
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