EUR/USD Reverses as Treasury Yields Drift Higher on Tuesday

EUR/USD rates reversed from their yearly high on Tuesday as U.S. Treasury yields moved to their highs of the day. French President Emmanuel Macron announced that he would appoint Defense Minister Sebastien Lecornu as the next Prime Minister following the collapse of the government yesterday. Traders are now turning their attention to the PPI release out of the United States on Wednesday morning.

 EUR/USD rates fell back into their multi-week trading range that’s been carved out since the beginning of August. The range, broadly speaking, from 1.16 to 1.1750, has potentially been part of a months-long topping process that the pair has been undergoing. A reversal back into the range suggests a return to the other side; support comes in play at 1.16, both in the form of the range low and the uptrend from the February, March, and August swing lows.