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During the early European session, the EUR/USD broke down from a consolidation formed above the round-level resistance of 1.0600. As the US Dollar Index (DXY) has rebounded modestly, the major currency pair has sensed immense pressure while reclaiming the 1.0600 resistance. After falling to around 104.30, the USD Index has sensed interest. Following the release of U.S. manufacturing PMI data on Wednesday, the USD Index is expected to trade sideways.
There is a risk-aversion theme that has retreated, as the dismal market mood is roaring again. Returns on 10-year US Treasury bonds have rebounded to near 3.93%. The gains added to the S&P500 futures in morning Asia have tailed off.
As a result of the recent pullback from the downward-sloping trendline indicated on a 4-hourly scale by the high of 1.10330 on February 02, the EUR/USD has been experiencing a tremendous amount of selling pressure. The price is still moving under the downward-sloping trendline.
It is still under the selling zone for this second symbol of the EUR/USD which is still under the 200MA.
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