EUR/USD crashes to 1.1220 as German yields turn negative

EUR/USD accelerates further to the downside in the European session, reversing yesterday’s relief rally, as the bulls remain unperturbed by upbeat industrial figures from the European Monetary Union (EMU).

EUR/USD eyes 1.1200

Currently, EUR/USD tanks -0.62% to hit fresh weekly lows of 1.1221, falling like a stone below 100-DMA support at 1.1241. The main currency pair keeps falling as the shared currency completely ignores above estimates Eurozone industrial production data amid massive sell-off in the German bund yields in response to intensifying Brexit woes. Germany's 10-year bond yield extends fall to minus 0.028%, down 5 basis points on day.

Markets fret over the outcome of the EU’s referendum scheduled on June 23rd and seek safety in traditional safe-haven like gold, yen, government bonds. At present, the benchmark 10-year German bunds are considered as the safest option across the financial markets.

Calendar-wise, we have the US retail sales data on the cards, which is likely to have virtually no impact on the major, as the risk-off environment will continue to drive EUR moves.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1301/03 (50-DMA/ Jun 13 High). A break beyond the last, doors will open for a test of 1.1321 (1h 100-SMA/ 10-DMA). On the flip side, the immediate support is placed at 1.1200 (key support) below which at 1.1134 (Jun 3 Low) could be tested.