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Rebound in US yields forcing further EUR/USD consolidation

The charge higher in the EUR/USD and breakout above 1.0760 on Tuesday delivered a move close to 1.09, as you all know. However, the price action seen since and for most of the day yesterday was one of further consolidation and one where the Euro was not able to build on the recent gains. In fact it has been characterised by a slow downward drift since stalling at recent highs again yesterday afternoon. This looks like further consolidation of the more dynamic move higher, seen the day before. Of course the rebound in US yields since this time yesterday morning has helped the dollar to recover, as we can see in the USD/JPY and that has for now stymied the topside in the EUR/USD. The EUR/USD has traded to a low of 1.0830 earlier today. That said, it is still not even close to testing, what should be support at 1.0760 now. Once again it is the USD/JPY and the EUR/JPY that are the drivers here, but for now, unless the USD/JPY backs down again, the EUR/USD is left with little choice, unless the EUR/JPY can continue to allow it to move beyond 1.09 and towards 1.10. The EUR/USD is currently trading at 1.0835

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