EUR/USD levels out despite heightened Middle East tensions and rising yields
Despite ongoing Middle East tensions, a hawkish Federal Reserve (Fed) and rising US Treasury yields EUR/USD continues to range trade above last week’s low at $1.0496 but below last week’s high at $1.0639. A break out of this range today looks pretty unlikely at the moment.
A rise and daily chart close above $1.0639 next week would indicate that a bottom is being formed with the July low and 200-day simple moving average (SMA) at $1.082 to $1.0834 representing potential upside targets.
A fall through $1.0496 would engage the key $1.0484 to $1.0444 support area, made up of the mid-November high, 7 December and 6 January lows. It needs to hold for EUR/USD to be able to bottom out.
