EUR/USD drops to fresh session lows

FXStreet (Mumbai) - The EUR/USD pair has turned lower to print a session low of 1.0625, its 5-DMA, in the early European session, tracking the fall in the bond yields across the Eurozone.

EUR falls as German 10-year yield hit record low

The shared currency came under pressure as the benchmark 10-year German bond yield fell to a record low of 0.094%. The 8-year yield has turned negative as well. Moreover, the fall was triggered by the ECB President Draghi, who defended the ECB’s QE target, while stressing that fears of scarcity of bonds are “little over exaggerated”.

Meanwhile, the USD is being supported by a slight uptick in the Treasury yields. Given the absence of a major market moving data in the US, the pair is likely to take cues from the bond yield differential.

EUR/USD Technical Levels

The immediate resistance is seen at 1.0692 (10-DMA), above which gains could be extended to 1.0745. On the flip side, support is seen at 1.0625 (5-DMA), under which losses could be extended to 1.0566 (April 10 low).