The EUR / USD pair at trading in Asia renewed its low on Thursday, after which it began to recover quite actively. The US dollar remains the main driver of the price movement. The American currency came under pressure after the yield on 10-year government bonds set a 14-month high at 1.754% and began to decline sharply and is now below 1.7%. A further decline in US Treasury yields will increase pressure on the dollar, so the EUR / USD pair has good chances of recovering to weekly highs today. But this scenario can only be realizable if the yield on the 10-year bonds is kept below the 1.7% mark.
The restraining factor for the European currency may be the situation on the stock markets. Major indices are trading in red today. Low demand for risky assets could hinder the recovery of other currencies against the US dollar.
There is practically no important news in the economic calendar today. In Europe, you can pay attention to the entry of the ECB representative Fabio Panetta. In the US, most likely, investors will focus on the situation on stock markets and the debt securities market. The yield of US Treasuries remains the main benchmark for the US currency.
On the chart, the price dropped to the support area at 1.1890. Here you can consider buying the instrument with the target at the level of 1.1990.
The main scenario is growth to 1.1990.
An alternative scenario is a breakdown of the support at 1.1890 and a decline to 1.1840.
The current fundamental background is moderately positive. We are considering longs near the level of 1.1890.
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