- EUR/USD is holding the recent rebound from three-month lows.
- Covid concerns, China’s growth slowdown spook investors, lift the USD.
- Powell-led weaker yields cushion the downside ahead of fresh US data.
EUR/USD is alternating between gains and losses, consolidating the recent recovery above 1.1800, as the US dollar attempts a bounce amid worsening market mood.
The greenback licks its wounds, finding some support from the risk-off sentiment, in light of the looming concerns over the Delta covid variant contagion and slowing Chinese economic growth. The Chinese economy expanded by 7.9% YoY in Q2, although fell short of the estimate of 8.1% growth.
On Wednesday, the main currency pair hit the lowest levels since April at 1.1772 amid a broadly stronger US dollar, as hotter inflation data spurred Fed’s hawkish expectations. However, in the American session, EUR/USD staged an impressive bounce after Fed Chair Jerome Powell poured cold water on hopes of potential monetary policy normalization.
Powell, in his Congressional testimony, signaled that withdrawal of monetary policy support is still distant, as the economic recovery is not there yet. Traders now await day 2 of Powell’s testimony for fresh trading incentives.
In the meantime, a slew of US macro news and broader market sentiment will have a significant impact on the major, as the downside remains cushioned by the persisting weakness in the Treasury yields.
EUR/USD: Technical levels
“A clear break of the 1.1860 figure, comprising the stated wedge’s upper line, becomes necessary for the EUR/USD bulls to aim for a 200-SMA level of 1.1985. Meanwhile, pullback moves will recall the 1.1800 round figure to the chart before testing the bullish formation’s support line, around 1.1765,” FXStreet’s Analyst Anil Panchal explains.
EUR/USD: Additional levels
|Today last price||1.1832|
|Today Daily Change||-0.0004|
|Today Daily Change %||-0.03|
|Today daily open||1.1836|
|Previous Daily High||1.1839|
|Previous Daily Low||1.1772|
|Previous Weekly High||1.1895|
|Previous Weekly Low||1.1782|
|Previous Monthly High||1.2254|
|Previous Monthly Low||1.1845|
|Daily Fibonacci 38.2%||1.1813|
|Daily Fibonacci 61.8%||1.1797|
|Daily Pivot Point S1||1.1793|
|Daily Pivot Point S2||1.1749|
|Daily Pivot Point S3||1.1726|
|Daily Pivot Point R1||1.1859|
|Daily Pivot Point R2||1.1882|
|Daily Pivot Point R3||1.1926|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.