EUR/USD refreshes session lows, slides back closer to 2-week lows

   •  Surging US bond yields underpin USD demand.
   •  Technically seems vulnerable to slide further.

The EUR/USD pair retained its weaker tone through the early NA session and is currently placed at fresh session lows, around the 1.2330-25 region.

The pair struggled to build on overnight rebound from near 2-week lows and met with some fresh supply near the 1.2400 handle. The selling pressure picked-up pace since the early European session amid some renewed buying interest surrounding the US Dollar. 

With the recent rout in global equity markets now seems to have abated, a fresh leg of an upsurge in the US Treasury bond yields underpinned the greenback demand and was eventually seen weighing on the major.

From a technical perspective, the pair remains within striking distance of its immediate support near the 1.2310-1.2300 region, which if broken would increase prospects for additional weakness in the near-term.

There isn't any major market-moving economic data due for release from the US and hence, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum on Wednesday.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, “the 4 hours chart shows that the downward potential increases, with the pair now below its 100 SMA, after being unable to surpass a now bearish 20 SMA earlier in the day. Technical indicators remain directionless within a negative territory. A key support comes at 1.2300, the 38.2% retracement of January's rally, and the level to break to confirm a steeper slide ahead, with scope to reach 1.2225, the 50% retracement of the same rally.”