EUR/USD is trading above 1.19, nearing the monthly high at 1.1927 as equities move off daily lows while US Treasury yields remain subdued. A critical ten-year Treasury auction is eyed. Covid concerns are weighing on the euro.
EUR/USD reverses the initial pessimism and advances beyond the 1.1900 hurdle at the beginning of the week.The rebound from YTD lows near 1.1700 remains healthy so far. A sustainable breakout of recent swing high should open the door to further gains with the next target at the 50% fibonacci retracement . A surpass of this area allows for a move to the key 1.2000 hurdle which coincides with the bearish parallel channel resistance.
The EUR/USD pair is near its recent high at 1.1927, the immediate resistance. The risk is skewed to the upside, although the bullish potential seems limited in the near-term.If EUR/USD break closes below recent low at 1.1860, we will see bearish traders pushing the market towards 1.171 support and further below awaits the lower boundry of the channel