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18 Mar 2015
EUR/USD rises above 1.06
FXStreet (Mumbai) - The American dollar is being sold on weak US Treasury yields, which has pushed the EUR/USD pair marginally above 1.06 levels.
EUR/USD: Can it sustain gains above 1.06?
The move to 1.0606 could have been due to weakness in the US Treasury yields. The 10-year yield is down 1.4 basis points at 2.045%. However, the weakness in the yields may not last long enough as the markets expect the Fed to drop the word”patient” from its forward guidance today.
Thus, the yields could recover as we move closer to the FOMC meeting, thereby pushing the EUR/USD pair back below 1.06 levels. Meanwhile, the shared currency could easily ignore second tier data sets like the construction output and Trade balance figures.
EUR/USD Technical Levels
The immediate resistance is seen at 1.0616, above which gains could be extended to 1.0650. On the other hand, a break below 1.06 could send the pair down to 1.0550 levels.
EUR/USD: Can it sustain gains above 1.06?
The move to 1.0606 could have been due to weakness in the US Treasury yields. The 10-year yield is down 1.4 basis points at 2.045%. However, the weakness in the yields may not last long enough as the markets expect the Fed to drop the word”patient” from its forward guidance today.
Thus, the yields could recover as we move closer to the FOMC meeting, thereby pushing the EUR/USD pair back below 1.06 levels. Meanwhile, the shared currency could easily ignore second tier data sets like the construction output and Trade balance figures.
EUR/USD Technical Levels
The immediate resistance is seen at 1.0616, above which gains could be extended to 1.0650. On the other hand, a break below 1.06 could send the pair down to 1.0550 levels.