Volatility in the EURUSD pair has declined over the previous days, and the euro was trading only 0.2% higher today, last seen at around 1.1620.
The EURUSD pair still trades below the key resistance (previous lows) near 1.1660, and while below, the medium-term bearish trend remains intact. At the same time, the dollar index remains above the critical support of 93.50, staying in a medium-term uptrend.
However, if the euro jumps above the mentioned 1.1660 level, we could see a quick leg higher toward the 50-day average near 1.17. In that case, the medium-term trend would likely change to neutral.
On the other side, the support seems to be located near 1.1580, which has been held during the previous days. If bears push the single currency below it, it might revisit the previous cycle lows at around 1.1525.
US yields dropped sharply today, with the 10-year yield falling below 1.6% and aiming at 1.5%, possibly undermining the US dollar further throughout the rest of the day.
EURUSD daily chart 3 PM CET