• EUR/USD bulls looking for a significant correction.
• US dollar could come under pressure as it stalls at 16-month highs. 

EUR/USD was hit heavily on Tuesday by surging US yields and the US dollar flying to 16-month highs. The euro has been pressured for a number of fundamental reasons and the greenback lifted for the same.

DXY H1 chart

EUR/USD daily chart

EUR/USD is meeting daily support and a correction to the 38.2% Fibonacci retracement level could be in order. 

From an hourly perspective, the price is trying to base in the low 1.1300 area and it is on the approach to the 38.2% Fibonacci that meets the 10-EMA.

Beyond there, we have the 61.8% Fibo that is almost aligned with the prior structure near the 21-EMA as near them targets.