EUR/USD retreats from 13-day highs to fresh daily lows

After the EUR/USD pair had made a run to weekly highs, it eventually retreated. The pair now is closer to the daily low as US yields rise.

The stocks market turns negative, while crude oil sinks. The EUR/USD pair failed to break the current range despite hitting the highest level in 13 days. The pair peaked at 1.0675 and then pulled back. It is trading at daily lows under 1.0620.

The short-lived run to 1.0675 coincided with the US dollar bottoming across the board. Afterwards, boosted by surging US Treasury yields. The US 10-year yield rose from 3.82% to 3.87%, a fresh monthly high.

Stock prices in the US turned negative adding some support to the dollar. The US Dollar reversed sharply during the last hour. The DXY rose from 6-day lows at 103.84 to 104.42, the strongest since Friday. Crude oil prices are falling by more than 2%.

Economic data released in the US showed mixed numbers. Pending Home Sales in November unexpectedly fell by 4% against expectations of a 0.6% increase; compared to a year ago sales are down by 37.8%.

The Richmond Fed Manufacturing Index jumped in December to 1 from -9, surpassing the market consensus of -4.

Technically; the EUR/USD was again rejected from the 1.0660/70 area and it reversed. Now it is moving toward 1.0600. A break lower would expose the lower limit of the current range at 1.0580. A consolidation below would point to a deeper correction, with the next support seen at 1.0530.