US dollar gains ground as Treasury yields continue climbing

The US dollar is strengthening as rising Treasury yields provide additional momentum for buyers. The 2-year yield has risen nearly 11 basis points to 4.837%, while the 10-year yield gained 7.7 basis points, reaching 5.066%. Last week, the 10-year yield hit a low of 4.814%.

There is a mismatch, however, with changes in market expectations for the Federal Reserve's December meeting. The probability of a 50-basis-point rate hike at that meeting has dropped to approximately 6.5%, down from nearly 14% the previous day. In theory, that should weigh on the dollar. But for now, the upward move in yields is having a stronger impact, and dollar buyers are maintaining control.

EURUSD technicals.

The EURUSD has fallen to a fresh low of 1.1053, moving below both the earlier session low of 1.1066 and the May 2025 low of 1.1060. These broken levels now serve as the first nearby resistance. Remaining below them would keep sellers firmly in charge.

For those looking for additional declines, the former October floor spanning 1.1103 to 1.1112 offers a more conservative risk zone. Sellers would not want to see the price climb back above that area. A recovery through it would undermine the bearish view and cast doubt on the break lower.

GBPUSD Technicals.

The GBPUSD has moved away from the October 28 low near 1.32729 and picked up further downside momentum after breaking below the earlier session low around 1.3249.

That decline has pushed the pair toward the middle of the broader range that confined most price action from mid-September to mid-October, between 1.3171 and 1.3310. The lower boundary at 1.3171 now becomes the next key downside target.

On the upside, the broken 1.3249 level is the first hurdle, followed by more significant resistance near 1.32729. Staying below that latter level keeps sellers in control. A move back above it would start to diminish the downside momentum.

USDCAD Technicals.

The USDCAD declined earlier in the session, but buyers stepped in ahead of the swing level at 1.42205. The low reached 1.4225 before the pair turned higher alongside broader dollar buying.

The subsequent rally has brought the price to a new session high of 1.4270. There is limited resistance before the October swing highs between 1.42918 and 1.42986. That area is the next key upside target.

A move above and sustained trade above that zone would open the door for further upside momentum. If sellers lean against those highs, a rotation lower would keep the resistance area in focus. To the downside, the 1.42205–1.4225 region now defines the support that buyers successfully defended today.

AUDUSD Technicals

The AUDUSD has extended to a new low of 0.6799, with today's decline taking the price below a key swing area between 0.6832 and 0.6863. That zone had provided a floor since mid-January. With the break lower, the former floor now becomes a ceiling and a key risk area for sellers.

Adding to the importance of that zone is the 50% midpoint of the move up from the November 2025 low to the early May high. That level is at 0.68499, within the swing area. Today's move below—and away from—that midpoint strengthens the bearish bias.

As long as the price stays below 0.6832–0.6863, sellers remain in control. Buyers would need to reclaim that area to challenge the break lower and shift the bias back in their favor.

To the downside, the next target is at 0.67658, followed by the 61.8% retracement at 0.6749. Those are the next hurdles for sellers as they look to extend the downside momentum.