EUR/USD: steady ahead of a key support at 1.1161
|Currently, EUR/USD is trading at 1.1184, up 0.01% on the day, having posted a daily high at 1.1187 and low at 1.1180.
EUR/USD has been consolidating the downside with a resurgence of the dollar. The question is how much further can the dollar rise in an environment that is supportive of a higher euro over the medium term. The answer lies in how long the markets will continue to respond to hawkish Fed speakers and political promises around fiscal spending to spur on the recovery in the US.
- Market wrap: US dollar stabilised - Westpac
- US Dollar hovers around daily highs above 97
- CME Group FedWatch's June hike probability leaped above 80%
EUR/USD is otherwise supported on improvements in the EU's economy, a more stable political outlook and the possibility of the ECB tapering in time to come with a turn in rhetoric from the Central Bank. However, the euro has slipped from the 1.12 handle while Wall Street, for now, is able to relish in the prospects found from Trump's budget plan for the fiscal year 2018. Also, Philadelphia Fed's President Patrick Harker was on the wires, via Reuters, repeating that he sees two more rate hikes this year. US Treasury Secretary Steve Mnuchin was saying today that he is hopeful that the tax reform will be completed in 2017.
EUR/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price has found some support around a bullish 20 SMA. "Technical indicators turned sharply lower from overbought levels, currently pressuring their mid-lines and ready to break lower. The pair has an immediate support at Monday's low of 1.1161, while a stronger one comes at 1.1080. Approaches to this last will likely attract buying interest. Back above 1.1220, the risk turns towards the upside, with room then to extend the advance up to 1.1300."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.