The rise in yields on 10-year US bonds completely erased investors' hopes for a narrower spreads between US and European government bonds. So what? It seems that EUR / USD follows this indicator very strictly, and given the current situation, the short ones seem pretty "tempting". Statistically speaking, a rise in the spread between US and German 10-year bonds leads to a EUR / USD decline and vice versa. Why are the current levels so promising for bears? EUR / USD is at the end of a strong upward trend and key levels. Let's take a look.
Technically, the pair is "hanging" on the top and the only support it can meet down the road is 200SMA. In addition to Short, the idea is also Sequential, which counts down 4th - the impulse is in effect. DeMarker remains in neutral territory. Given the strength of the dollar in recent days, the rise in bond yields and the key breakthrough, I expect negativism to grow. Support for the couple can be expected in the area around 200SMA, but short-term.
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