The US dollar is moving higher as rising Treasury yields give buyers another push. The 2-year yield is up nearly 11 basis points at 4.837%, while the 10-year yield is up 7.7 basis points at 5.066%. The 10 year yield bottomed last week at 4.814%.
What does not quite line up is the change in Fed policy expectations for December. The probability of a 50-basis-point hike from the Fed at the December meeting has slipped to about 6.5% from nearly 14% yesterday. In isolation, that should take some pressure off the dollar. So far, however, the rise in yields is carrying more weight, and dollar buyers remain in control.
EURUSD technicals.
The EURUSD has extended to a new low of 1.1053, breaking below both the earlier session low at 1.1066 and the May 2025 low at 1.1060. Those broken levels now provide the first close resistance. Staying below them would keep sellers firmly in control.
For traders looking for further downside, the former October floor between 1.1103 and 1.1112 provides a more conservative risk area. Sellers would not want to see the price move back above that zone. A recovery through it would weaken the bearish bias and raise questions about the break lower.
GBPUSD Technicals.
The GBPUSD has moved away from the October 28 low near 1.32729 and gathered additional downside momentum after breaking below the earlier session low near 1.3249.
That move has taken the pair toward the middle of the broader range that contained most of the price action from mid-September to mid-October, between 1.3171 and 1.3310. The lower boundary at 1.3171 is now the next key downside target.
On the topside, the broken 1.3249 level is the first hurdle, followed by more important resistance near 1.32729. Staying below that latter level keeps the sellers in control. Move back above it, and the downside momentum starts to lose some traction.
USDCAD Technicals.
The USDCAD moved lower earlier in the session, but buyers stepped in ahead of the swing level at 1.42205. The low reached 1.4225 before the pair rotated back higher with the broader dollar buying.
The subsequent rally has taken the price to a new session high at 1.4270. There is limited resistance before the October swing highs between 1.42918 and 1.42986. That area is the next key upside target.
Move above that zone and stay above it, and the door opens for further upside momentum. If sellers lean against those highs, a rotation lower would keep the resistance area in play. On the downside, the 1.42205–1.4225 area now defines the support that buyers successfully defended today.
AUDUSD Technicals
The AUDUSD has extended to a new low at 0.6799, with today’s decline taking the price below a key swing area between 0.6832 and 0.6863. That zone had provided a floor going back to mid-January. With the break lower, the former floor now becomes a ceiling and a key risk area for sellers.
Adding to the importance of that zone is the 50% midpoint of the move up from the November 2025 low to the early May high. That level comes in at 0.68499, within the swing area. Today’s move below—and away from—that midpoint strengthens the bearish bias.
As long as the price remains below 0.6832–0.6863, sellers remain in control. Buyers would need to reclaim that area to question the break lower and shift the bias back in their favor.
On the downside, the next target comes in at 0.67658, followed by the 61.8% retracement at 0.6749. Those are the next hurdles for sellers as they look to extend the downside momentum.
This article was written by Greg Michalowski at investinglive.com.