EUR/USD is down by 0.7% so far today
The pair is keeping lower as the dollar firms against the rest of the major currencies bloc - exception being the loonie - as Treasury yields retrace some of its heavy fall since Friday.
10-year yields hit a low of 0.31% yesterday but has recovered to about 0.66% currently, and that is helping the dollar pull back from its recent lows.
For EUR/USD, the two supportive factors helping the pair are working against it today.
As risk trades are retracing some of the sharp losses yesterday, the unwinding of short euro trades isn't quite a factor to push gains in the single currency at the moment.
Meanwhile, the recent narrowing in the Treasury-Bund yields spread is also seeing a breather amid the rise in Treasury yields over the past two sessions so that is helping the dollar.
The push lower today also comes as price meets daily resistance from the 50.0 retracement level @ 1.1448 as well as key resistance near 1.1500.
That said, the near-term bias continues to favour buyers despite the slight pullback today. The 100-hour moving average rests at 1.1277 and I would look towards that level before starting to shift away from sticking with the recent upside momentum.
So far, there are no strong hints that what is happening in the market today is not anything more than a slight pullback/retracement. As such, keep an eye on the technical levels as they will offer a good indication of any changes in bias/sentiment.
For EUR/USD, I'd keep an eye on 1.1300 and the 100-hour moving average. Otherwise, the upside momentum in the pair remains intact for now at least.
