EUR/USD: Unperturbed by cross-driven strength as T-yields rise

The selling pressure behind the EUR/USD pair intensifies as we head into the late-Asian trades, knocking-off the rate closer towards 1.06 handle.

EUR/USD: DXY tracks Treasury yields higher

Currently, the spot now drops -0.34% to fresh session lows of 1.0606, eyeing for a test of 10-DMA located at 1.0587. EUR/USD remains heavily sold-off and fails to benefit from cross-driven strength, with EUR/GBP rallying over 1% on Hard-Brexit backed broad GBP weakness.

The major remains under pressure as investors prefer to hold the reserve currency – the USD in times of uncertainty and market panic, now re-enforced by Hard-Brexit fears. While higher treasury yields also underpin the sentiment around the buck, therefore, weighing down on EUR/USD. The USD index rises +0.37% to 101.54 levels.

Markets now look forward to the trade balance data from the Euroland amid holiday-thinned trading, as the US markets remain closed in observance of Martin Luther King Day.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0650 (psychological levels). A break beyond the last, doors will open for a test of 1.0687 (5-week tops) and from there to 1.0700 (zero figure). On the flip side, the immediate support is placed at 1.0600 (zero figure) below which 1.0587 (10-DMA) and 1.0553 (50-DMA) could be tested.