Wednesday, September 16, 2015

EUR/USD pares gains, trades below 5-DMA

FXStreet (Mumbai) - The bid tone on the USD recovered in the early European session, pushing the EUR/USD pair back below its 5-DMA located at 1.1279 levels.

USD bid as treasury yield spiked

The two-year treasury yield, which mimics short-term rate hike expectations, spiked to 4-year high of 0.8% on Tuesday, leading to a broad based strength in the US dollar. The pair rose to a high of 1.1298 in Asia, but the uptick in the treasury yields ensured the USD recovered part of its losses.

The investors could continue to track the movement in the US two-year treasury yield ahead of the US monthly inflation report, which could show core CPI ticked higher in August.

EUR/USD Technical Levels

The spot currently trades around 1.1275. The immediate resistance is seen at 1.13 levels, above which the pair could rise to 1.1332 (Sep 1 high). On the other side, support is seen at 1.1263 (daily low) and 1.1234 (200-DMA).
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