- EUR/USD remains under pressure and approaches 1.1900.
- A deeper pullback targets the 1.1830 region in the short-term.
EUR/USD has dropped toward 1.19 reversing its post-FOMC rise towards 1.20 as yields of US ten-year Treasuries hit new highs above 1.75%. Europe is struggling with vaccine distribution. Investors are still digesting the Fed's dovish statement, yet one that accepts higher long-term borrowing costs.
So far, the 1.20 region continues to cap occasional bullish attempts, leaving the door open for an extension of the offered bias and a potential move to the 2021 lows in the 1.1835/30 band (March 9).
The EUR/USD pair trades at daily lows in the 1.1920 price zone, and the 4-hour chart shows that the risk is skewed to the downside. The pair met sellers and after briefly surpassed the 50% retracement of the November/January rally.While technical indicators resume their declines, crossing their midlines into bearish territory.
