EUR/USD analysis: pressuring 1.1700, still ranging
|EUR/USD Current price: 1.1704
- Risk for the EUR/USD pair slowly skewing toward the downside, 1.1690 immediate support.
- Fed's Powell expected to offer clues on the future of monetary policies.
The EUR/USD pair retreats from a daily high of 1.7442 to hover around the 1.1700 figure ahead of Wall Street's opening, still trading uneventfully. The greenback found some demand post-London opening but majors hold on to early week limited ranges, including EUR/USD. There were no macroeconomic releases in the EU that could affect the pair earlier, and market players are now waiting for Jerome Powell's testimony on monetary policy before a Senate special committee, hoping to get some fresh clues on monetary policy that can help them make up their minds. There are two things that the market will be looking for, one, if Powell could hint at which level rates will reach a neutral level, and the other, how concerned policymakers are about the current trade protectionism policies and how could those affect the monetary policy.
The short-term picture for the EUR/USD is overall neutral, as the pair keeps developing above its moving averages, which are anyway confined to a tight range, reflecting the absence of clear directional strength. Technical indicators in the mentioned chart hold in positive territory, although the RSI gains downward traction and pressuring its mid-line, somehow anticipating a downward move ahead, particularly on a break below 1.1690, the immediate support. Bearish momentum will likely increase once the 1.1660 support gives up.
Support levels: 1.1690 1.1660 1.1620
Resistance levels: 1.1725 1.1755 1.1790
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