EUR/USD struggles below mid-1.1900s, hangs near 1-1/2 week lows

   •  On offers for the fourth consecutive session.
   •  Surging US bond yields underpin USD. 
   •  Bears awaiting a break below 1.19 handle.

Having posted a session high near mid-1.1900s, the EUR/USD pair met with some fresh supply and drifted into negative territory for the fourth consecutive session.

The pair stalled its overnight modest rebound and moved back closer to over one-week low touched in the previous session. The ongoing upsurge in the US Treasury bond yields underpinned the US Dollar demand and has been a sole factor weighing on the major. 

Market participants now seemed convinced that the Fed would continue with its gradual monetary policy tightening cycle through 2018 and lifted the 10-year bond yield to a 10-month high, which eventually helped the greenback to extend its post-NFP recovery move. 

In absence of any major market moving economic releases from the Euro-zone, the USD price dynamics would continue to act as an exclusive driver of the pair's momentum through the European trading session. Later in the day, the US economic docket, featuring the release of import prices and final wholesale inventories data, might also provide some short-term impetus. 

The key focus, however, would be on this week's other US macro data, namely the latest inflation figures, which might turn out to be a key determinant of the pair's near-term trajectory.

Technical levels to watch

Bulls might continue to guard the 1.1900 handle, which if broken decisively is likely to accelerate the slide towards 1.1855 intermediate support en-route the 1.1820-15 region. On the upside, any recovery attempts might continue to confront fresh supply near the 1.1950-60 region and any subsequent up-move seems more likely to be capped at the key 1.20 psychological mark.