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15 May 2015
EUR/USD: Early burst fails, pair back below 1.14
FXStreet (Mumbai) - The demand for the Euros in the early European session faded, pushing the EUR/JPY pair back below 1.14 levels as the German bund yields extended the drop. The pair ran into offers above 1.14 levels, marking another failure to sustain above the said level.
Rejected at 1.1420, bund yields extends the drop
The German 10-year yield now trades 4 basis points lower at 0.66%. The drop has norrowed the German-US 10-year yield spread, since the 10-year Treasury yield has managed to restrict its fall to 2.2%. Consequently, the EUR/USD turned lower from 1.1420.
Ahead in the day, the pair could take cues from the US industrial production and Prelim. Michigan confidence index. Till then, the trading desks are likely to continue tracking the German-US 10-year yield spread.
EUR/USD Technical Levels
The pair currently trades at 1.1391. The immediate resistance is located at 1.1443, above which the gains could be extended to 1.1532. On the other hand, a break below 1.1369, could drive the pair lower to 1.1324.
Rejected at 1.1420, bund yields extends the drop
The German 10-year yield now trades 4 basis points lower at 0.66%. The drop has norrowed the German-US 10-year yield spread, since the 10-year Treasury yield has managed to restrict its fall to 2.2%. Consequently, the EUR/USD turned lower from 1.1420.
Ahead in the day, the pair could take cues from the US industrial production and Prelim. Michigan confidence index. Till then, the trading desks are likely to continue tracking the German-US 10-year yield spread.
EUR/USD Technical Levels
The pair currently trades at 1.1391. The immediate resistance is located at 1.1443, above which the gains could be extended to 1.1532. On the other hand, a break below 1.1369, could drive the pair lower to 1.1324.