EUR/USD has been falling alongside as US yields rally. It seems that only another taper tantrum can halt the dollar’s ascent – but for now, the Federal Reserve is tolerating higher returns on Treasuries, allowing the dollar to rise, FXStreet’s Analyst Yohay Elam reports. Key quotes “The Fed is seeing through the current hardship and is looking forward toward the vaccine-led recovery. Higher yields reflect optimism, which it welcomes – at least for now. What will it for the powerful central bank to boost bond buys and send the dollar down? A stock market sell-off. The Fed seems unwilling to see “financial conditions” – aka equities – suffer. If investors throw a 2013-style tantrum – when shares fell on the mere hint that the Fed would slow Treasury purchases – Powell may change his mind.” “In the meantime, COVID-19 continues raging on both sides of the Atlantic, while the vaccination pace remains sluggish. So far, only around 2% of Americans received at least the first jab, while in most European countries the ratio is below 1%. Investors would need to see immunization stats rising and covid ones falling.” “Euro/dollar has dropped below the 50 and 100 Simple Moving Averages on the 4-hour chart and momentum turned sharply to the downside. The Relative Strength Index remains above 30 – outside oversold conditions and allowing for more falls.” “Some support awaits at the daily low of 1.2165 – which is the lowest in three weeks. It is followed by 1.2125 – a critical support line that supported EUR/USD more than once in December.” “Robust resistance awaits at 1.2205, which was a swing low in late 2020. It is followed by 1.2240, which is where the 100 SMA hits the price.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/KRW: Bright prospects for the Korean won in 2021 – MUFG FX Street 1 year EUR/USD has been falling alongside as US yields rally. It seems that only another taper tantrum can halt the dollar's ascent – but for now, the Federal Reserve is tolerating higher returns on Treasuries, allowing the dollar to rise, FXStreet’s Analyst Yohay Elam reports. Key quotes “The Fed is seeing through the current hardship and is looking forward toward the vaccine-led recovery. Higher yields reflect optimism, which it welcomes – at least for now. What will it for the powerful central bank to boost bond buys and send the dollar down? A stock market sell-off. The Fed seems unwilling to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.