Key facts
- EURUSD broke below the support zone of 1.15768-1.15872.
- The pair also fell below the 200-hour moving average at 1.1628 and 100-hour moving average at 1.1620.
- Strong US jobs data increased Treasury yields, with the 10-year up 6.3 bps and 2-year up 11.7 bps.
- The next downside target for EURUSD is 1.15046.
- USDCHF broke above key resistance levels, driven by the stronger dollar.
The EURUSD currency pair has broken below a critical support zone between 1.15768 and 1.15872, which had previously held since May 20. The pair also fell below the 200-hour moving average at 1.1628 and the 100-hour moving average at 1.1620. This technical breakdown is attributed to a strong U.S. jobs report that pushed Treasury yields higher, with the 10-year yield increasing by 6.3 basis points and the 2-year yield by 11.7 basis points. The next downside target for EURUSD is the April 6 low of 1.15046, with a potential objective at the 2026 low of 1.14089. The robust employment data may influence the Federal Reserve's upcoming FOMC meeting on June 16-17, potentially shifting its policy stance from an easing bias towards neutral or hawkish. Concurrently, the USDCHF pair has broken above key resistance levels between 0.7923 and 0.7926, now acting as support, with upside targets near 0.7956-0.7961, also driven by the stronger U.S. dollar.