- The EUR/USD is extending its very gradual climb, breaking above downtrend resistance.
- Powell's testimony may trigger much more significant moves.
The EUR/USD is extending its gains above 1.1700, trading in limited ranges. The US Dollar is generally on the back foot as no news is good news for financial markets and not-so-great news for the greenback. Nevertheless, the broader trend is USD-positive.
Worsening trade relations favor the American currency as it is currently outperforming its peers and may remain at this position even if all economies suffer from tariffs, counter-tariffs, and other non-tariffs barriers.
President Donald Trump met his counterpart Vladimir Putin on Monday in Helsinki. The encounter created extraordinary headlines from Trump, which seemed to believe Putin's "strong denial" of meddling in the US elections more than America's intelligence services. However, there were no market-moving headlines.
The focus now shifts to the all-important testimony by Fed Chair Jerome Powell. The world's most powerful central banker goes to Capitol Hill, and his agenda is packed. The Federal Reserve will first release his prepared statement before he reads it out and then answers lengthy questions from Senators today, and House representatives tomorrow. Trade and inflation are high on the agenda.
See: Powell preview: 5 market-moving topics to look out for
In the old continent, there are no significant events today, leaving the stage to Powell.
EUR/USD Technical Analysis
-636674113323345569.png)
The EUR/USD broke above downtrend resistance on Monday. It did in an unspectacular manner, ticking up and holding its ground. This is a bullish sign. Momentum is marginal to the upside while the Relative Strength Index is rising gently.
Resistance awaits at 1.1760 which was a swing high on July 12th. 1.1795 was the peak on July 9th and remains of importance. The June 14th high at 1.1850 is next.
Looking down, 1.1695 capped the pair on July 13th and served as support on the 10th. Further support is at 1.1665 which was a swing low on the 11th and 1.1590 that was the low point of the month so far.
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 retargets the 0.6600 barrier and above
AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD keeps the bullish bias above 1.0700
EUR/USD rapidly set aside Friday’s decline and regained strong upside traction in response to the marked retracement in the Greenback following the still-unconfirmed FX intervention by the Japanese MoF.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Bitcoin price dips to $62K range despite growing international BTC validation via spot ETFs
Bitcoin (BTC) price closed down for four weeks in a row, based on the weekly chart, and could be on track for another red candle this week. The last time it did this was in the middle of the bear market when it fell by 42% within a span of nine weeks.
Japan intervention: Will it work?
Dear Japan Intervenes in the Yen for the first time since November 2022 Will it work? Have we seen a top in USDJPY? Let's go through the charts.