EUR/USD dips below 1.13 as treasury yields rise

Bid tone around US dollar strengthened in Asia, pushing EUR/USD to a session low of 1.1284 as Treasury yields ticked higher.

Focus on Jackson Hole

FX markets await Fed chairwoman Yellen’s speech at Jackson Hole scheduled on Wednesday. Markets would be hearing word uttered by Yellen to see if she offers any hint at a rate hike.

Action in Asia – Rise in the treasury yields, especially at the short-end of the curve – suggests markets are preparing for hawkish comments. No wonder the spot drifted lower from the session high of 1.1330.

EUR/USD Technical Levels

A break of immediate support at 1.1284 (rising trend line from June 24 low and July 8 low) would open doors for 1.1240 (Aug 17 low). A violation there could yield 1.12 levels. On the higher side, breach of resistance at 1.1330 (daily high) would expose resistance at 1.1347 (61.8% of 1.1616-1.0911) and 1.14 levels.