EUR/USD: Poised to extend its slump towards the 1.1840 mark

EUR/USD is under pressure amid rising yields as has broken below the 61.8% retracement of its November/January rally at 1.1885. The pair is bearish in the near-term despite oversold conditions, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The US Senate passed President Joe Biden’s stimulus bill with some changes, and it has now moved back to the House, where a vote is expected on Tuesday. The news adds support to the greenback and maintains equities afloat.”

“The greenback’s strength comes from US Treasury yields, which resume their advances this Monday, and flirt with one-year highs ahead of Wall Street’s opening.”

“The next support comes at 1.1840, with a break below it favoring an extension towards 1.1790, the next relevant support level.”