EUR/USD: Finds Bottom Pickers Sub 1.1250

The rout in global bond yields has been pronounced, with US fixed income drawing the most interest, which has resulted in the yield spread advantage vs the Germans to take a hit. In yesterday’s thesis, I mentioned that the reduction in the US vs German yield spread was a key reason why it’d be difficult to sustain prolonged periods of selloff in this market. Looking at Wed’s price action, the formation of an L-shaped volume profile with up to 4 different failed attempts to break through 1.1250 reflects precisely this argument. That said, sellers are still in control as the price consolidates at the lows of the ongoing hourly trend, with a descending trendline still guiding us lower.