EUR/USD Current price: 1.0824
- The US Dollar can not lift its head after Federal Reserve’s Powell resumed the hawkish tone.
- Market participants await a United States inflation update on Thursday.
- EUR/USD trades within familiar levels but bulls remain in charge.
The EUR/USD pair trades uneventfully at around 1.0820 on Wednesday, still confined to a tight intraday range, with the US Dollar maintaining the soft tone across the FX board. Financial markets were unable to take directional clues from Federal Reserve (Fed) Chairman Jerome Powell’s testimony before Congress. Powell´s words on monetary policy resumed the hawkish tone that he partially abandoned in Sintra, triggering a short-lived USD run.
Still, market participants remain unconvinced, awaiting a clue that does not seem to come. Everything about the United States (US) economy seems to be moving in the right direction—growth, employment, and inflation—but at a pace that does not require the Fed’s intervention.
Additional hints will come on Thursday when the US will publish Consumer Price Index (CPI) figures. Annual inflation is foreseen up 3.1% in June while the monthly increase is expected to be 0.1%. Finally, the core annual CPI is foreseen unchanged at 3.4%.
Meanwhile, today's focus will be on speeches from Fed policymakers, including Chair Powell. Powell will repeat its testimony on monetary policy before a different commission in the American afternoon.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair is bullish, according to the daily chart. The pair keeps comfortably trading above all its moving averages, with the 100 and 200 Simple Moving Averages (SMAs) converging around 1.0790 and providing support. At the same time, technical indicators aim to resume their advances whitin positive levels, skewing the risk to the upside, although without confirming an upcoming rally.
EUR/USD is neutral-to-bullish in the near term. The 4-hour chart shows a directionless 20 SMA caps advances, although the longer moving averages tick marginally higher, well below the current level. Finally, the Momentum indicator lacks directional strength around its 100 line, but the Relative Strength Index (RSI) indicator picked up within positive levels, in line with increased buying interest. Bulls will be more comfortable once the 1.0850 area is cleared, while bears can take their chances on a break below 1.0790.
Support levels: 1.0790 1.0740 1.0700
Resistance levels: 1.0850 1.0880 1.0930
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.

GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.

Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.

Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.