EUR/USD Forecast: Waiting for chief Powell

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1895

US Federal Reserve chief Jerome Powell will testify on the covid crisis.
EU Consumer Confidence is foreseen improving modestly in June to -3 from -5.1.
EUR/USD is bearish, contained by a critical Fibonacci resistance level.

The EUR/USD pair trades uneventfully below the 1.1900 level after trading as high as 1.1920 on Monday. Investors are waiting for US Federal Reserve chief Jerome Powell due to testify on the Fed’s emergency lending programs and current policies before the House Select Subcommittee on the Coronavirus Crisis. The optimistic stance from Powell & Co. last week boosted the greenback.

Data wise, the EU will publish June preliminary Consumer Confidence, foreseen at -3 from -5.1 previously. The US will release May Existing Home Sales and the June Richmond Fed Manufacturing Index.

EUR/USD short-term technical outlook

The EUR/USD pair keeps meeting sellers around a critical Fibonacci resistance, the 61.8% retracement of its March/May rally at around 1.1920. In the 4-hour chart, the risk is scheduled to the downside, as the pair is unable to recover above a bearish 20 SMA, struggling around it. The Momentum indicator retreats modestly from its midline, while the RSI indicator consolidates around 34. The pair could recover up to 1.2000, but the risk will remain skewed to the downside unless it clearly advances beyond the level.

Support levels: 1.1840 1.1800 1.1770

Resistance levels: 1.1920 1.1960 1.2000

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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