EUR/USD is trading around 1.1300 as the US dollar seesaws between gains and losses following the dynamic of government bond yields. US Treasury 10-year note yield now below 1.40%, pushing the greenback lower. ECB's Lagarde pushes back reflation fears, undermines demand for the shared currency.
The EUR/USD pair trades in the 1.1280 region after meeting sellers around a Fibonacci level, the 23.6% retracement of the November slump. The near-term picture is bearish, given that, in the 4-hour chart, the pair retreated after testing its 20 and 100 SMAs, both converging and heading lower around the daily high. In the meantime, technical indicators remain directionless within negative levels, maintaining the risk skewed to the downside without confirming a bearish movement yet.
Support levels: 1.1260 1.1210 1.1165
Resistance levels: 1.1310 1.1345 1.1380
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