EUR/USD analysis: bulls remain in control, looking for a test of 1.1460
|EUR/USD Current price: 1.1392
- Attention gyrates around Fed's Chief Powell upcoming speech on monetary policy.
- Risk aversion triggered by US-Iran mounting tensions favors safe-haven assets.
The EUR/USD pair has peaked at 1.1411, its highest since mid-March, as the greenback remains out of the market's favor. Fears played against the American currency after US President Trump announced new sanctions on Iran amid escalating tensions between the two countries. Equities fell, demand for government bonds rose, and yields are close to multi-year lows. The European macroeconomic calendar had nothing relevant to offer, while within US data, speeches from Fed's officers, Chair Powell included, will highlight the American session. The country will also release some housing-related data, including New Home Sales for May, and the CB Consumer Confidence Index for June. Chief Powell is expected to speak about monetary policy, and his words will be closely watched for fresher hints about a possible rate cut next July.
The EUR/USD pair corrected from the mentioned high, finding buyers around 1.1376, so far the daily low, now recovering slowly but steadily. The 4 hours chart shows that technical indicators corrected extreme readings, but also that they have now stabilized in overbought territory. In the same chart, the 20 SMA heads north almost vertically below the current level, far above the 100 and 200 SMA that also turned higher. The 23.6% retracement of its latest bullish run stands at 1.1356, the level to break to see the pair correcting lower. In the meantime, the risk remains skewed to the upside, with gains beyond 1.1420 favoring a test of the 1.1460 price zone.
Support levels: 1.1360 1.1325 1.1295
Resistance levels: 1.1420 1.1460 1.1500
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