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
AUD/USD consolidates near two-week high, looks to US NFP for fresh impetus
AUD/USD holds steady around the 0.6335 area during the Asian session on Friday as traders now await the US NFP report. Bets that the Fed will cut rates further amid concerns over failing US economic growth keep the USD depressed near a multi-month low and act as a tailwind for spot prices, though tariff jitters warrant caution for bulls.
USD/JPY seems vulnerable amid divergent Fed-BoJ expectations; US NFP awaited
USD/JPY languishes near its lowest level since October touched on Thursday amid a bearish USD, led by bets that the Fed could cut rates multiple times in 2025 amid slowing US economic growth. Moreover, the hawkish sentiment surrounding the BoJ's policy outlook underpins the JPY and validates the negative bias for the pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
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.