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EUR/USD holds steady near 1.1830 region, lacks follow-through

  • EUR/USD regained positive traction on Tuesday amid some renewed USD selling bias.
  • The USD bulls seemed rather unimpressed by a strong pickup in the US bond yields.
  • Disappointing US Consumer Confidence Index failed to provide any respite to the USD.

The EUR/USD pair maintained its bid tone through the early North American session and refreshed daily tops, around the 1.1845 region in the last hour, albeit lacked any follow-through.

The pair caught some fresh bids on Tuesday and moved back closer to the previous day's swing high amid the emergence of some fresh selling around the US dollar. The optimism over a potential vaccine and treatment for the highly contagious coronavirus disease undermined the greenback's relative safe-haven status, which, in turn, assisted the EUR/USD pair to regain positive traction.

On the other hand, the shared currency benefitted from upbeat German macro data, which showed that the economy contracted by a record 9.7% in the second quarter of 2020 as compared to 10.1% estimated previously. Adding to this, the German Ifo Business Climate Index rose to 92.6 in August from the previous month's 90.5 and surpassed consensus estimates pointing to a reading of 92.2.

Meanwhile, the USD failed to get any respite from a strong pickup in the US Treasury bond yields and remained depressed following the disappointing release of the Conference Board's Consumer Confidence Index. The gauge deteriorated further in August and dropped to 84.8 from the 91.7 previous, missing Reuters' estimate of 93 by a big margin.

Apart from this, investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later this week. Hence, it remains to be seen if the pair is able to capitalize on the move or runs into some fresh supply at higher levels.

Technical levels to watch

EUR/USD

Overview
Today last price1.1831
Today Daily Change0.0043
Today Daily Change %0.36
Today daily open1.1788
 
Trends
Daily SMA201.1811
Daily SMA501.1532
Daily SMA1001.1254
Daily SMA2001.1148
 
Levels
Previous Daily High1.185
Previous Daily Low1.1784
Previous Weekly High1.1966
Previous Weekly Low1.1754
Previous Monthly High1.1909
Previous Monthly Low1.1185
Daily Fibonacci 38.2%1.1809
Daily Fibonacci 61.8%1.1825
Daily Pivot Point S11.1765
Daily Pivot Point S21.1742
Daily Pivot Point S31.17
Daily Pivot Point R11.183
Daily Pivot Point R21.1873
Daily Pivot Point R31.1896

Author

Haresh Menghani

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

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