EUR/USD Current price: 1.1715
- US Fed's Powell to testify before the Senate Banking Committee this Tuesday.
- Majors directionless as investors maintains a cautious stance.
Trading was quite erratic across the financial world at the beginning of the day, with the dollar lower against all of its major rivals, to later recover as US Treasury yields advanced firmly for the first time in nearly two weeks. The EUR/USD pair tested a daily high of 1.1725 in the European session, holding between such high and the 1.1700 for the rest of the day. There were some relevant macroeconomic news coming from both shores of the Atlantic, although they had little saying on price action. In the EU, the goods trade balance surplus shrunk in May to €16.5B amid a fall in exports combined with an increase in imports. The US released June retail sales, which were up by 0.5% as expected, while the control group reading remained pat. On a positive note, May's readings were revised higher, offsetting the poor headlines, while the NY Empire State Manufacturing Index came in at 22.6, better than the 22.0 expected.
This Tuesday, market's attention will center on Fed's Powell testimony before the Senate Banking Committee and any clue he can give of future monetary policy decisions. The EU won't publish macro news, while the US will release June Industrial production and Capacity Utilization expected better than May's numbers.
Technically, the pair met sellers at around the 23.6% retracement of the April/May's decline, which has proved strong in the past and despite the modest intraday advance, it maintains a neutral technical stance, given that in the 4 hours chart, the pair is developing a handful of pips above a congestion of moving averages, which reflects the absence of a clear directional strength, while technical indicators eased within positive territory, reflecting limited buying interest. The downside potential seems also limited, at least as long as the pair holds above the 1.1660 static support.
Support levels: 1.1660 1.1620 1.1580
Resistance levels: 1.1720 1.1755 1.1790
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.