EUR/USD Steadies Around 1.1370 as German Yields Drop to Record Lows
Little action is seen in the EUR/USD pair in the European session this Wednesday, as the EUR markets have turned cautious amid ECB’s corporate bond purchases and looming Brexit concerns.
EUR/USD in a wait-and-see mode amid ECB action
Currently, EUR/USD trades +0.10% higher at 1.1370, wavering below Tuesday’s high printed at 1.1380. The main currency pair is seen trading in an extremely tight range in the upper bound of 1.13 handle as traders refrain from placing big bets on the euro after ECB commenced its corporate bond buying programme yesterday, which knocked-off German yields to record lows. The benchmark 10-year German bund yields fell to a record low of 0.033%, down -27% on the day, before recovering slightly in the last hour.
Moreover, mixed sentiment in the markets ahead of the looming EU referendum also boosts the safe-haven demand for the German bunds, considered safest at the moment. Hence, the major continues its range-play and now awaits ECB Draghi’s speech due tomorrow for fresh direction.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.1393/1.1400 (May 6 high/ round number). A break beyond the last, doors will open for a test of 1.1450 (psychological levels) On the flip side, the immediate support is placed at 1.1306 (5-DMA/ 50-DMA) below which at 1.1281 (May 13 Low) could be tested.