EUR/USD retreats from near 1.2150, holds above 1.2100

• Euro about to end the week flat versus the US dollar after sharp recovery.
• US dollar remains under pressure despite rising US yields.

The EUR/USD peaked earlier on Friday at 1.2144, the highest level since Tuesday. It then pulled back, finding support at 1.2110, and as of writing, it is hovering at 1.2130, around the same level it closed last week.

The pair lost strength after facing resistance near 1.2150 and also amid rising US yields that offer some support to the dollar. The 10-year yield reached 1.33%, the highest level in a year.

Higher US yields only boosted the DXY modestly off lows. The index stands at 90.30, down 0.30% for the day and modestly lower for the week, after trading in positive during most of the week.

Equity prices in Wall Street are rising. The Dow Jones is up by 0.41% and the Nasdaq by 0.75%. The risk-on mode across markets contributes to the upside in EUR/USD.

EUR/USD confirms rebound from the 20-week SMA

From a technical perspective, the EUR/USD moves with a bullish bias in the very short-term. In the daily chart, the pair needs to break the 1.2170 area to clear the way to more gains. A slide back under 1.2090 would weaken the euro.

On a weekly basis, the EUR/USD rebounded again from the 20-week moving average, suggesting the 1.2020 level is still strong support. A weekly close below the mentioned level would deteriorate the technical outlook for the euro.

Technical levels