EUR/USD: Recovery remains capped below 1.1300 ahead of US GDP, Powell
|- Italian budget impasse, broad-based US dollar strength keeps the bearish pressure intact.
- Downside opening up towards 1.1216 as Fed Chair Powel’s comments could trigger a fresh USD rally.
The EUR/USD pair manages to move off the daily lows near 1.1265 region, but the recovery remains capped below the 1.13 handle, as the bears continue to fight for control amid notable US dollar demand across the board.
The safe-haven appeal of the US dollar remains underpinned amid fresh tariff threats from the US President Trump on China while the latest reports on the US auto tariffs combined with the Fed Vice Chair Clarinda’s hawkish comments also continue to buoy the US dollar. Clarida said that he backs the case for gradual rate hikes, adding that the economic fundamentals are robust. Meanwhile, the US dollar index hovers near two-week highs of 97.53, up +0.10% so far.
On the EUR-side of the equation, the ongoing Italy-EU stand-off on the Budget deficit goal is not going down well with the Italian bond markets, which continues to remain EUR-negative.
In the day ahead, the speeches by the ECB Governing Council members Coeure, Guindos and Praet will be eyed for fresh impetus on the common currency while the main event risk for today remains the Fed Chair Powell’s speech. Markets eagerly await the Fed’s take on the future policy path, which will have a significant impact on the dollar trades in the coming days.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1281
Today Daily change: -15 pips
Today Daily change %: -0.133%
Today Daily Open: 1.1296
Trends:
Previous Daily SMA20: 1.1362
Previous Daily SMA50: 1.1473
Previous Daily SMA100: 1.154
Previous Daily SMA200: 1.178
Levels:
Previous Daily High: 1.1346
Previous Daily Low: 1.1277
Previous Weekly High: 1.1473
Previous Weekly Low: 1.1328
Previous Monthly High: 1.1625
Previous Monthly Low: 1.1302
Previous Daily Fibonacci 38.2%: 1.1303
Previous Daily Fibonacci 61.8%: 1.1319
Previous Daily Pivot Point S1: 1.1267
Previous Daily Pivot Point S2: 1.1238
Previous Daily Pivot Point S3: 1.1199
Previous Daily Pivot Point R1: 1.1336
Previous Daily Pivot Point R2: 1.1375
Previous Daily Pivot Point R3: 1.1404
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