EUR/USD trims losses and moves near 1.1760 ahead of Powell
|- EUR/USD stays depressed near the 1.1760 region on Tuesday.
- EMU’s advanced Consumer Confidence gauge coming up next.
- Markets’ attention remains on the testimony by Fed’s J.Powell.
EUR/USD remains on the defensive in the mid-1.1700s ahead of key data in the region and Powell’s testimony.
EUR/USD looks to Powell, USD
EUR/USD has managed to regain some composure following new multi-week lows in the 1.1720 region recorded earlier in the session, always on the back of the moderate recovery in the greenback.
At his speech on Tuesday, ECB’s F.Panetta reiterated the central bank needs to closely watch the level of the exchange rate, adding that the results from the ECB stimulus plan are still not satisfactory while inflation is seen running well below the bank’s target.
Later in the session, the European Commission (EC) will publish its preliminary gauge of the September Consumer Confidence followed by the speech of ECB’s P.Lane.
In the US calendar, Existing Home Sales for the month of August are due seconded by the Richmond Fed index and the key testimony by Chief J.Powell before the House Financial Services Committee on the Federal Reserve’s response to the pandemic.
What to look for around EUR
EUR/USD dropped and recorded fresh monthly lows near 1.1720 earlier in the session, resuming the post-FOMC downtrend. Despite the move, the pair’s outlook remains positive and bouts of weakness are so far deemed as short-lived and look contained. Further out, the underlying constructive bias in the euro remains underpinned by auspicious results from domestic fundamentals (which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis), the so far calm US-China trade front and the steady – albeit vigilant- stance from the ECB. The solid position of the EMU’s current account and the positive performance of the speculative community are also lending support to the shared currency.
EUR/USD levels to watch
At the moment, the pair is losing 0.12% at 1.1756 and faces the next support at 1.1720 (monthly low Sep.22) seconded by 1.1709 (38.2% Fibo of the 2017-2018 rally) and finally 1.1695 (monthly low Aug.3). On the other hand, a break above 1.1917 (high Sep.10) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1).
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.