EUR/USD to turn bearish on a break below 1.2110

EUR/USD trades around 1.2140, losing bullish strength as fading risk-on sentiment weighs on the shared currency. Nonetheless, the pair is far from turning bearish, Valeria Bednarik, Chief Analyst at FXstreet, informs.

The risk-on mood fades, with government bond yields on the rise

“The risk-on mood that took over financial markets on Friday prevailed at the weekly opening, although it fades somehow ahead of Wall Street’s opening, as European equities fell as government bond yields advance.”

“The risk of a bearish turn would increase on a break below 1.2110, the immediate support level.”