EUR/USD Current Price: 1.1159
- ECB's Draghi scheduled to speak Wednesday, but attention shifts to FOMC Minutes.
- Dollar supported by Fed's Powell pouring cold water on speculation related to rate cuts.
The shared currency maintains the harsh tone against its American rival, having failed to preserve intraday gains. The EUR/USD pair jumped to a daily high of 1.1184, getting a temporary boost from Pound's strength, this last jumping on news that UK PM Theresa May was offering a new Brexit deal and allowing Parliament to decide on a second referendum. The pair, however, quickly trimmed gains and return to its comfort zone in the 1.1150/60 price zone, where it stands ahead of the Asian opening. Data released this Tuesday also played in favor of a recovery, as EU's May preliminary Consumer Confidence improved by more than anticipated, coming in at -6.5 vs. the previous -7.9 and the expected -7.6, while the US Existing Home Sales declined in April by 0.4% against an expected 2.7% gain. Dollar's strength was the result of comments from US Fed's Chief Powell, who cooled down expectations of an upcoming rate cut in the US in a speech offered late Monday.
Wednesday's macroeconomic calendar will include a speech from ECB's Draghi and the release of the latest FOMC Meeting's Minutes. This last could pass unnoticed after the most recent words from Powell and the already digested 'patient' stance of US policymakers.
The EUR/USD pair retains the bearish stance according to intraday technical readings, as it was unable to recover above a critical Fibonacci level, the 61.8% retracement of the latest daily advance in the 1.1170 price zone. Furthermore, the 4 hours chart shows that the pair remains below a bearish 20 SMA which stands just below the mentioned Fibonacci resistance and below the larger ones. Technical indicators in this last time frame have recovered modestly within negative levels, lacking sufficient strength to suggest a bullish continuation.
Support levels: 1.1145 1.1110 1.1080
Resistance levels: 1.1190 1.1220 1.1245
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0600 as focus shifts to Powell speech
EUR/USD fluctuates in a narrow range above 1.0600 on Tuesday as the better-than-expected Economic Sentiment data from Germany helps the Euro hold its ground. Fed Chairman Powell will speak on the policy outlook later in the day.
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
Gold price remains depressed near $2,370 amid bullish USD, lacks follow-through selling
Gold price (XAU/USD) attracts some sellers during the early part of the European session on Tuesday and reverses a major part of the overnight recovery gains from the $2,325-2,324 area, or a multi-day low.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
Canada CPI Preview: Inflation expected to accelerate in March, snapping two-month downtrend
The Canadian Consumer Price Index is seen gathering some upside traction in March. The BoC deems risks to the inflation outlook to be balanced. The Canadian Dollar navigates five-month lows against the US Dollar.