EUR/USD Reversal: US Dollar and Yields Prove to be Thorny Obstacles

The EUR/USD pair experienced a rally in the early trading session but was ultimately thwarted by the US dollar and yield reversals.

The NY market opened near 1.1355, slightly higher than the overnight low of 1.1329, before rising to 1.1380 following the release of the August PCE report. However, this rally was short-lived as the US dollar and yields turned up, pushing the pair back down.

The reversal in sentiment was also reflected in other markets, with gold and silver erasing their post-PCE gains and stocks experiencing a decline in their gains. The EUR/USD pair ultimately closed the day at 1.1333, down -0.03% from its high.

Technical indicators are bearish for the pair, with a daily inverted hammer candle and declining RSI readings on both the daily and monthly charts. Additionally, the pair's price action is being influenced by its hold below the 10-day moving average and widening Bolli bands.