The pair looks to fade back to the 200-day near 1.1108. The rally in the dollar following its steep declines last week could cause a more pronounced slide as long as the DXY remains supported (92.50 remains a key near-term ).
Next, traders are saw bunds bid while the U.S. 10Y remained rather muted, causing spreads to become the widest since last December.
The U.S. 10Y has held a relatively strong negative correlation with the dollar index going back to last August. If the dollar remains supported, there will likely be dampened demand for U.S. paper outside of any significant headline risk that could spark demand.
If price action does not confirm a downtrend break above 1.1342, the euro will likely slide against the dollar and challenge the minor uptrend created in December.
S/R levels remain key targets for advancement and pullbacks.
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A break out could cause the euro-dollar to challenged 1.1560 or a pressured dollar could rally a bid causing a challenge of the broken downtrend.