EUR/USD looks vulnerable below 1.1350, German yields crash again

The EUR/USD pair is making minor-recovery attempts, after witnessing a 50-pips massive fall in the last hour, as the greenback recedes gains against its major peers amid risk-off markets.  

EUR/USD: US data eyed

Currently, EUR/USD trades -0.30% lower at 1.1362, retreating slightly from fresh session lows struck at 1.1351 last hour. Fresh selling seen in the European equities, broad based US dollar rebound and a sharp slide in the German bund yields yet again triggered a fresh sell-off in the main currency pair, dragging the prices from near 1.14 handle to 1.1350 region.

At the moment, the bears have taken a pause and therefore, seem to allow a minor-bounce in EUR/USD as negative European equities underpin the funding currency status of the euro. However, the recovery looks fragile as the German yields hover at new record lows, weighing on the sentiment around the EUR. The benchmark 10-year German bund yields fell to a record low of 0.032%, down over -30% on the day, before rebounding sharply to now trade around  0.042%, still down -28.23%.

Markets shrugged-off dismal German data and ECB official’s speeches as the broader market sentiment coupled with USD price-action continues to dominate the major. Next of note for the major remains the US jobless claims data due later in the NA session.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1400 (round number). A break beyond the last, doors will open for a test of 1.1450 (psychological levels). On the flip side, the immediate support is placed at 1.1306 (50-DMA) below which at 1.1281/52 (5-DMA/ 1h 200-SMA) could be tested.