EUR/USD bounces from 1.1925 and erases losses

EUR/USD moved off daily lows during the last hours after US dollar rally lost strength. The pair climbed to 1.1968 and at the moment trades at 1.1955/60, around the same level it closed yesterday. 

The Dollar Index jumped to levels above 92.00 and now is back at 91.85. The greenback appears to have lost strength but remains supported by the bond market. US bond yields are testing daily highs and a break higher could add momentum again to the US dollar. 

US Dollar fades the spike above 92.00

EUR/USD Levels to watch 

The short-term tone continues to point to the downside but the side so far has been capped near the key support at 1.1920. A break of that zone could clear the way to a slide to 1.1900 and below to test 1.1865/70 (Sep 5 low). 

On the upside, for the next hours if the EUR/USD remains above 1.1950 the doors for a test of daily highs at 1.1975/80 could remain open. While if it drops below, the bearish pressure could rise. To the upside, resistance levels might be located at 1.1975/80 (daily high), 1.2000 and 1.2025/30 (Sep 11 high).