- Repeated rejections above 1.13 is a cause for concern for the EUR bulls.
- EUR is struggling despite the sustained slide in Treasury yields.
- EUR could drop if the ECB officials sound dovish.
EUR/USD continues to trade below 1.13, having faced rejections above the psychological level in the last two trading days.
The spot clocked a high of 1.1322 and 1.1312 on Tuesday and Wednesday, respectively. However, on both days, the spot closed below 1.13.
As of writing, the pair is trading at 1.1282, having hit a high and low of 1.1295 and 1.1277, respectively, earlier today.
The hourly and 4-hour charts were flashing bullish conditions in Asia. Further, the yield on the US 10-year fell to 1.938%, the lowest level since November 2016.
Even so, the pair is finding little love, which is a cause for concern for the EUR bulls.
The shared currency may come under pressure in Europe if the European Central Bank’s new chief economist Philip Lane reiterates scope for interest rate cut. Lane is scheduled to speak at 07:00 GMT. The economic was out on the wires earlier this week stating the bak could resume bond purchases to boost inflation.
Post-Lane’s speech, the focus would shift to the Eurozone retail sales for May, due for release at 09:00 GMT. A better-than-expected number may put a bid under the EUR. However, a break above 1.13, if any, will likely be short-lived if ECB’s Vice President De Guindos sounds dovish. The board member will be speaking at 09:10 GMT today.
The liquidity may be thin in the EUR/USD market as the US is closed on account of Independence Day holiday.