EUR / USD slips below 1.1200, new low session


• A modest USD uptick stimulates some recent sales at higher levels.
• Lower yields on US bonds may limit USD gains and limit the downside.

The EUR / USD failed to capitalize on the initial uptick for the multi-day tops and fell below the 1.1200 hold, new session lows in the last hour.

The pair was built on the night break of the low opening and gained some strength on Tuesday. The rise to the 1.1218 area appeared not to have been affected by the disappointing release of the German Factory Orders, which increased by 0.6% m / m – less than expected in March.

The increase, however, turned out to be short-lived rather than meeting some fresh supply amid a modest recovery in US dollar demand. After spending most of the first part of the trading session on Tuesday negative territory, the dollar picked up some proposals and was seen as one of the main factors behind the intraday slide.

Meanwhile, the last stage of a drop of about 25 pips had no obvious fundamental catalyst. In addition, the continuing decline in US Treasury yields may hold a lid on any USD recovery on the run and should help limit any substantial weakness amid the absence of relevant economic launches in the market.

Thus, it would be prudent to await a strong follow-up sale before traders begin to position themselves for the resumption of the pair's earlier / well-established downward trend and a possible backward withdrawal for YTD's bearish support, closer to the 1.1100 mark round figure. .

Technical levels to watch


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