EUR/USD tumbles in sync with German yields, NFP eyed

The offered tone behind the euro picked-up pace last hours, sending the EUR/USD pair almost 50-pips lower from eleven-day peaks of 1.0690.

EUR/USD drops to test 5-DMA at 1.0633                                                        

Currently, EUR/USD drops -0.16% to fresh session lows of 1.0642, edging back towards 1.06 handle. The main currency pair ended its bullish move and dropped in the European hours, mainly driven aggressive selling seen in the German bund yields, in wake of increased nervousness ahead of Sunday’s Italian referendum. The benchmark 10-year German bond yields slumped -7% to 0.33%, while the European equity markets tumble -1% to -1.40%.

Further, renewed buying interest seen in the greenback against its main peers, also exerted additional downward pressure on EUR/USD. Moreover, position adjustments ahead of the critical US jobs data, also cannot be ruled out, which could have also partly triggered fresh selling in the major.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0685/90 (Nov 28 high/ 11-day high). A break beyond the last, doors will open for a test of 1.0726 (daily R2) and from there to 1.0746 (Nov 17 high). On the flip side, the immediate support is placed at 1.0610 (10-DMA) below which 1.0561 (Nov 28 low) and 1.0535 (Nov 25 low) could be tested.