EUR/USD drops towards 1.2000 amid broad US dollar bounce

EUR/USD stuck in a narrow range ahead of the FOMC decision.
Lagarde’s speech also eyed, as the Fed is likely to hold fire.
Higher DXY and Treasury yields weigh on the spot.

Dhwani Mehta FXStreet

EUR/USD is extending losses towards 1.2000 ahead of the European opening bells, having failed to find acceptance above 1.2050 amid a broad-based US dollar rebound.

The market sentiment remains tepid amid cautious remarks from Fed Chair Powell on the US economy while the continued covid surge in India and Japan continues to dent the risk appetite.

Powell said that the US economy is doing better but is “not out of the woods yet,” in remarks prepared for delivery at a conference of the National Community Reinvestment Coalition.

The greenback gains amid broad risk-aversion and subdued price action in the Treasury yields, in turn, benefiting the main currency pair. At the press time, the 10-year US rates hover around 1.60%, stalling its recovery from near 1.58%.

Meanwhile, mixed German Retail Sales and Final Manufacturing PMIs fail to keep the EUR bulls motivated, as the major remains at the mercy of the US dollar dynamics. The hourly technical setup paints a bearish picture in the near term amid a bearish crossover and RSI.

On Monday, EUR/USD advanced as the greenback faltered alongside the yields on weaker-than-expected US ISM Manufacturing PMI.

Investors now look forward to the US Trade and Factory Orders data for fresh incentives while the sentiment on Wall Street could also influence the major.

EUR/USD technical levels

EUR/USD

Overview
Today last price	1.2034
Today Daily Change	-0.0030
Today Daily Change %	-0.25
Today daily open	1.2065

Trends
Daily SMA20	1.2004
Daily SMA50	1.1954
Daily SMA100	1.2054
Daily SMA200	1.1944

Levels
Previous Daily High	1.2076
Previous Daily Low	1.2013
Previous Weekly High	1.215
Previous Weekly Low	1.2017
Previous Monthly High	1.215
Previous Monthly Low	1.1713
Daily Fibonacci 38.2%	1.2052
Daily Fibonacci 61.8%	1.2037
Daily Pivot Point S1	1.2027
Daily Pivot Point S2	1.1988
Daily Pivot Point S3	1.1964
Daily Pivot Point R1	1.209
Daily Pivot Point R2	1.2114
Daily Pivot Point R3	1.2153

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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