- EUR/USD falls to near 1.1238 as the US Dollar regains ground.
- The US Dollar bounces back as US bond yields recover.
- Heightened French fiscal concerns to keep the Euro under pressure.
The Euro (EUR) is down 0.18% to near 1.1238 against the US Dollar (USD) during the Asian trading session on Wednesday. The major currency pair faces selling pressure as the US Dollar regains ground after a corrective move the previous day.
At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.18% higher marginally above 102.00.
The US Dollar Index corrected on Tuesday amid signs that the rally in United States (US) bond yields hit a pause. However, the US Treasury Yields have rebounded again and return above the 5.3% mark.
Going forward, the next trigger for the US Dollar will be the Federal Open Market Committee (FOMC) minutes of the September policy meeting, which will be published at 18:00 GMT.
On the Euro front, heightened French fiscal crisis due to ballooning debt, which now stands at 119% of Gross Domestic Product (GDP), is expected to keep the major currency under pressure.
EUR/USD Technical Analysis
In the daily chart, EUR/USD trades at 1.1238, maintaining a bearish near-term bias as spot holds below the 20-day exponential moving average (EMA) at 1.1376. Price action remains pressured after a steady series of lower closes, while the Relative Strength Index (14) near 25 suggests oversold conditions that may slow the downside without yet altering the prevailing bearish structure.
On the topside, immediate resistance is located at the 20-day EMA at 1.1376, which caps recovery attempts and defines the level bulls would need to reclaim to ease the current downside pressure. With no nearby technical supports from the provided dataset, traders will likely look to price behavior around the recent lows for signs of either base-building or an extension of the downtrend.
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