EUR/USD Forecast: Dollar eases as Powell looms

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0531

US Federal Reserve Chief Jerome Powell will testify before Congress.
Global stocks lost their positive momentum, Wall Street poised to open in the red.
EUR/USD has its bearish potential intact in the daily chart, needs to break below 1.0460.

The EUR/USD pair trades in the 1.0530 price zone, barely down on the day after falling to an intraday low of 1.0468. The dollar gathered intraday strength amid a cautious market mood ahead of US Federal Reserve chief Jerome Powell's testimony before Congress, although it is shedding some ground right ahead of the event. In the meantime, Asian and European indexes edged lower, dragging US futures now poised to open in the red.

Beyond Powell's testimony, the macroeconomic calendar will include little of interest. The EU will release the preliminary estimate of June Consumer Confidence, while in the US, President Joe Biden is scheduled to speak.

EUR/USD short-term technical outlook

From a technical point of view, EUR/USD retains the bearish stance in the daily chart. The pair develops below a bearish 20 SMA, currently providing dynamic resistance at around 1.0610. The Momentum indicator head firmly lower within negative levels, as the RSI indicator consolidates around 45, the latter reflecting the absence of directional strength.

The near-term picture is neutral-to-bearish. The pair is currently hovering around a flat 20 SMA while below the longer ones. Technical indicators, in the meantime, seesaw directionless around their midlines. Bears need to push the pair below 1.0460 to take control of the pair, while intraday advances are likely if EUR/USD advances beyond 1.0610.

Support levels: 1.0500 1.0460 1.0420

Resistance levels: 1.0570 1.0615 1.0660

View Live Chart for the EUR/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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