The yield on the US 10-year note reached a high of 2,884% while the one on the 30-year bond struck 2,969%, being the highest levels in two years. At the same time, the Dollar Index ( DXY ) also hit its strongest level since April 2020 at 100.86.
Meanwhile, the euro remains on the back foot after the European kept a dovish stance after its decision last week, kicking the can to the third quarter, at least. Divergent monetary policies coupled with no signs of peace in Eastern Europe, continue to push the EUR/USD lower.
From a technical perspective, the EUR/USD holds a downward bias according to the . The and the remain in negative territory, gaining momentum, but not hinting at oversold conditions just yet.
A break below the 1.0750 area could pave the way to April’s 2020 low of 1.0727 and then target the 1.0700 psychological level.
On the other hand, the EUR/USD needs to overcome the 1.0830 zone to ease the immediate selling pressure and attempt a bounce toward the 1.0935 area where last week’s highs converge with the 20-day .