Trading Insights

EUR/USD

Euro Strength Capped by Yield Differentials

EUR/USD holds a cautiously bearish bias. Elevated US yields have limited dollar upside, allowing the euro to stabilize and appreciate marginally. A firmer JOLTS report supported USD yesterday, but yields remain high enough to cap sustained dollar strength.

The ECB curve remains flatter and materially lower than the US curve. While a theoretical bullish case exists if the ECB tightens, it lacks the structural support needed for durability.

Key Levels: Support at 1.1509 | Resistance at 1.1833

Investor Takeaway: Euro gains remain tactical rather than structural; US labor data remains the primary catalyst.

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