EUR/USD lost its traction in the second half of the day and touched a fresh session low below 1.1330. With American investors returning after the New Year break, US Treasury bond yields surged higher and provided a boost to the greenback, lifting the US Dollar Index back above 96.00.
On the four-hour chart, the Relative Strength Index (RSI) indicator retreated below 50, confirming the view that the bullish pressure is fading away.
As of writing, the pair is testing 1.1340 (former resistance, static level). In case a four-hour candle closes below that level, additional losses toward 1.1300 (psychological level, 200-period SMA) could be witnessed in the near term.
On the upside, 1.1360 (static level, post-ECB high on December 16) aligns as initial resistance before 1.1385 (December 31 high) and 1.3400 (psychological level).
