A downside break cannot be ruled out as the EUR/USD pair risks a downside break of the 1.2150-1.2550 trading range, courtesy of the widening US-German yield spread. Moreover, what is the main focus for today? Read on as the 23 April EURUSD Technical Analysis will reveal.
23 April, GKFX – As of writing, the difference or the spread between the 10-year US-German yield stands at 238.8 basis points (bps) – the highest level since 1989. Meanwhile, the pair is trading at 1.2272, having clocked a low of 1.2249 on Friday.
Moreover, the spread will likely widen further in the USD-positive manner as the 10-year treasury yield is closing in on a big break above 3 percent. Further, the technical chart shows scope for a rally to 3.5-3.6 percent.
Focus on Eurozone PMI
If the preliminary PMIs (due today) print below estimates, then the investors will likely start pricing-in renewed dovishness from the ECB. The central bank is expected to keep rates unchanged this Thursday.
23 April EURUSD Technical Analysis
FXStreet Chief Analyst Valeria Bednarik writes,
“according to the 4 hours chart, the bearish potential is even clearer, as the pair has broken below all of its moving averages, with the shortest gaining downward strength above the larger ones, and technical indicators consolidating near oversold readings, with no signs of downward exhaustion.
The daily ascendant trend line comes at 1.2240 for this Monday, while between 1.2240 and 1.2260, the pair has multiple relevant lows from these last few weeks, which means that a break of 1.2215, the low set early April is required to confirm a bearish extension ahead”.
Support levels: 1.2250 1.2215 1.2180
Resistance levels: 1.2300 1.2335 1.2375
This article 23 April EURUSD Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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