Currently, the pair is trading near 1.18. The EUR/USD made a new low in today’s trading.
The widening yield gap between 10-year US and German government bonds is striking. It is already up to 2% (200 basis points). The EURO is still quite relaxed at the moment. He’s resilient and doesn’t want to fall too hard. However, the longer this spread remains at current levels, the more pressure will be put on the EUR.
Looking at the chart, we notice that we broke below the 200 day line today. In the past, this has always served as support or resistance.