EUR/USD Current Price: 1.1745
- The second coronavirus wave in Europe keeps the shared currency under pressure.
- US Federal Reserve chief Powell to testify before Congress.
- EUR/USD is technically bearish, could lose the 1.1700 threshold.
The EUR/USD pair trades near a fresh September low of 1.1719 achieved during London trading hours. Investors stand cautious ahead of US Federal Reserve Chair Powell’s testimony before Congress. Powell is set to reiterate the Fed’s outlook on the economy, that is showing a “marked improvement,” but also that the future is highly uncertain and depends on controlling the coronavirus pandemic. His prepared speech also notes that the need for more help from Congress, which continues to disagree on a coronavirus aid-package.
Meanwhile, the shared currency remains under pressure amid mounting coronavirus-related concerns, as several countries have announced new restrictive measures. After Wall Street’s opening, the US will publish August Existing Home Sales, seen up a modest 2.4% following a 24.7% increase in the previous month. The EU, on the other hand, will publish the preliminary estimate of September Consumer Confidence, foreseen at -14.6 from -14.7 in August.
EUR/USD short-term technical outlook
The EUR/USD pair IS hovering around 1.1750, biased lower according to intraday technical readings. In the 4-hour chart, the pair remains below all of its moving averages, with the 20 SMA losing bearish momentum but holding below the larger ones. Technical indicators, in the meantime, remain near their daily lows although without clear directional strength.
Support levels: 1.1730 1.1690 1.1650
Resistance levels: 1.1770 1.1810 1.1850
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