EUR/USD bounces to test 1.1950 on rising German yields

• DXY drops again to test 92.00
• Re-takes 1.1950.
• Eyes on US-German yield spread.

The EUR/USD pair found buyers once again near 1.1925 region, now pushing the rates briefly above the midpoint of the 1.19 handle.

EUR/USD: 1.2000 back in sight?

The spot caught a fresh in the European session and extended the uptick to hit fresh daily tops of 1.1955, mainly driven by the renewed weakness seen around the US dollar amid narrowing US-German 10-year yield spread.

The 10-year German yields jumped to 0.54%, the highest levels seen since August 2017. Meanwhile, the USD index drops -0.15% to daily lows of 92.05, unable to sustain the bounce near 92.30 region.

Moreover, negative tone seen on the European indices also lift the demand for the funding currency EUR. Attention now turns towards the US import prices data in absence of fresh fundamental drivers from the Euroland.

EUR/USD Technical Levels

The AceTrader Team notes: “Euro's decline on Tue from 1.1976 (Asia) to 1.1916 in New York due to broad-based selling of the euro as well as USD's strength on soaring U.S. yields confirms recent upmove has made a top at last Thursday's 3-1/2 month high at 1.2089 n as long as 1.1976 holds, downside bias remains for marginal weakness, however, loss of momentum should keep price above 1.1885. On the upside, a daily close above 1.1976 needed to signal said decline has made a temporary low and outlook would turn bullish for subsequent headway towards 1.2021.”