EUR/USD consolidates around mid-1.0800s ahead of US data, Fed’s Powell

EUR/USD ticks lower on Wednesday, though the downside remains cushioned.
Bets for a June Fed rate cut weigh o the USD and lend some support to the pair.
Traders now look to Fed Chair Powell’s testimony ahead of the ECB on Thursday.

Haresh Menghani FXStreet

The EUR/USD pair extends its consolidative price move for the second straight day on Wednesday and remains confined in a narrow band around mid-1.0800s through the Asian session.

Spot prices did get a minor lift on Tuesday amid a modest US Dollar (USD) weakness led by the disappointing release of the US ISM Services PMI, though the momentum faltered near the 1.0875 region, or over a one-week high. Traders seem reluctant to place aggressive USD bearish bets and prefer to wait for more clarity about the Federal Reserve's (Fed) rate-cut path. Hence, Fed Chair Jerome Powell's congressional testimony will play a key role in influencing the USD price dynamics and provide a fresh impetus to the EUR/USD pair.

Apart from this, traders on Wednesday will take cues from the US macro data – the ADP report on private-sector employment and JOLTS Job Openings data. The focus will then shift to the European Central Bank (ECB) meeting on Thursday and the key US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday. In the meantime, reduced bets for more aggressive policy easing by the ECB might continue to underpin the shared currency and help limit any corrective decline for the EUR/USD pair.

From a technical perspective, the recent repeated failures ahead of the 1.0900 mark warrant caution for bullish traders. Hence, it will be prudent to wait for some follow-through buying beyond the said handle before traders start positioning for an extension of the EUR/USD pair's goodish recovery move from sub-1.0700 levels, or the YTD low touched on February 14. Nevertheless, the fundamental backdrop suggests that the path of least resistance for spot prices is to the upside and supports prospects for the emergence of some dip-buying.

EUR/USD

Overview
Today last price	1.0851
Today Daily Change	-0.0007
Today Daily Change %	-0.06
Today daily open	1.0858

Trends
Daily SMA20	1.0802
Daily SMA50	1.0865
Daily SMA100	1.0831
Daily SMA200	1.0831

Levels
Previous Daily High	1.0876
Previous Daily Low	1.084
Previous Weekly High	1.0866
Previous Weekly Low	1.0796
Previous Monthly High	1.0898
Previous Monthly Low	1.0695
Daily Fibonacci 38.2%	1.0863
Daily Fibonacci 61.8%	1.0854
Daily Pivot Point S1	1.084
Daily Pivot Point S2	1.0822
Daily Pivot Point S3	1.0804
Daily Pivot Point R1	1.0876
Daily Pivot Point R2	1.0894
Daily Pivot Point R3	1.0911

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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