EUR/USD struggles to maintain upward momentum, trading below 1.1250 as French bond yields hit a 22-year high, signaling potential downside risk for the currency pair.
The EUR/USD pair is exhibiting bearish technical exhaustion, as evidenced by a series of lower highs during each rally attempt since October 2. Despite the significant development of French 10-year government bond yields breaching the 5% threshold for the first time since 2002, the Euro has demonstrated a lack of volatility, suggesting a decoupling from traditional yield-spread correlations and a potential lack of bullish momentum.
The pair is showing signs of weakening momentum, characterized by a series of lower highs in its rallies since October 2.
The Euro showed minimal movement despite French 10-year bond yields climbing above 5%.
The Euro remains stagnant against the U.S. Dollar, trading just under the 1.1250 level despite French 10-year government bond yields breaching 5% for the first time since 2002. Technical indicators show weakening momentum, with successive rallies since October 2 failing to reach previous highs.
The pair has recorded four consecutive rallies since October 2 that failed to surpass previous peaks, indicating a lack of buying conviction near the 1.1250 level.