EUR/USD: Buyers to remain on the sidelines unless a move beyond 1.1350

EUR/USD has regained its traction after declining below 1.1300 on Tuesday. The pair will recover bullish momentum on a break above the key resistance that seems to have formed near 1.1350, FXStreet’s Eren Sengezer reports.

Rising US Treasury bond yields help the greenback 

“Although the euro could find some demand in case the market mood continues to improve, another leg higher in US T-bond yields should help the dollar stay resilient against its major rivals.”

“A negative shift in risk perception is likely to make it difficult for the common currency to find demand. In that case, EUR/USD could turn south but the losses could remain limited if US T-bond yields start edging lower as well.”

“In case the pair manages to rise above the 1.1340/1.1350 area (Fibonacci 38.2%, 200-period SMA) and starts using it as support, the next bullish target could be seen at 1.1400 (psychological level, Fibonacci 23.6% retracement).”

“Key support is located at 1.1280 (static level) before 1.1260 (Fibonacci 61.8% retracement) and 1.1240 (static level).”