EUR/USD spikes, nears 50-DMA hurdle on USD sell-off

EUR/USD pair is trading within a touching distance from daily 50-MA hurdle of 1.1149 as the US dollar suffered another leg lower in Asia.

Treasury yields dropped

Dollar sell-off was ticked off by the drop in the treasury yields in the NY session. The greenback was offered again in Asia as the 2-yr treasury yield, which mimics short-term rate expectations, dropped by 1.2 basis points. Moreover, the drop in yields indicates the markets are not buying the idea of another Fed rate hike despite strong non-farm payrolls data.

The data docket is thin across Europe, which leaves the pair at the mercy of overall demand for the US dollar. Later in the US session, Jolts Job Openings figure could influence the pair.

EUR/USD Technical Levels

The spot was last seen trading around 1.1140. A break above immediate resistance at 1.1149 (50-DMA) could yield a move to 1.1181 (38.2% of 1.1616-1.0911). A violation there would expose 1.1227 (100-DMA). On the other hand, a breach of support at 1.1133 (10-DMA) could open doors for a drop to 1.11, under which the spot may target 1.1079 (200-DMA).