EUR/USD is holding the advance above 1.1400, helped by a broadly softer US dollar. The retreat in the Treasury yields and an upbeat market mood drag the greenback lower. The Fed sentiment and inflation concerns continue to play out. Fed Mester's speech eyed.

In the absence of high-impact data releases, investors will pay close attention to the 10-year US Treasury note auction, which will take place at 1800 GMT. The benchmark 10-year US T-bond yield reached its highest level in more than two years at 1.97% on Tuesday. In case the auction points to weak demand, the 10-year yield could climb above the key 2% threshold and provide a boost to the greenback.

decline from 1.1483 signals recent upmove has made a temp. top, as long as res area at 1.1448/58 holds, prospect of another fell remains, below 1.1398 would encourage for weakness to 1.1376/80, however, reckon 1.1345 (38.2% r of 1.1122-1.1483) should contain weakness.
Bids are noted at 1.1410/1.1400 with stops below 1.1390 while offers are tipped at 1.1440/50 with stops touted above 1.1460.

The near-term technical outlook reflects the pair's indecisiveness with the Relative Strength ındex (RSI) indicator on the daily chart retreating toward 50.

On the downside, first support seems to have formed at 1.1400 (psychological level, Fibonacci 23.6% of the latest uptrend). In case sellers manage to flip that level into resistance, the next bearish target could be seen at 1.1350 (Fibonacci 38.2% retracement) before 1.1330, where the 200-period SMA on the four-hour chart is located.

Resistances align at 1.1480 (static level), 1.1500 (psychological level, static level) and 1.1550 (static level).

EURUSD Testing Daily Support Order Block

Feb 09 2022