EUR/USD to suffer additional losses in case 1.1400 support fails

EUR/USD has continued to edge lower after snapping a five-day winning streak on Monday. As FXStreet’s Eren Sengezer notes, a deeper correction toward 1.1350 is possible.

10-year US Treasury bond yield is closing in on 2%

“The benchmark 10-year US Treasury bond yield is rising toward the key 2% mark, helping the dollar find demand. The US Dollar Index could extend its rebound in case the 10-year yield rises above that level and further weigh on EUR/USD.”

“In case EUR/USD falls below 1.1400 (psychological level, Fibonacci 23.6% of the latest uptrend) and starts using that level as resistance, it could target 1.1350 (Fibonacci 38.2% retracement) next. The 200-period SMA on the four-hour chart aligns as the next support at 1.1330.”

“On the upside, resistances could be seen at 1.1480 (static level), 1.1500 (psychological level, static level) and 1.1550 (static level).”