EUR/USD juggles above 1.0800 amid subdued USD Index, Eurozone Retail Sales eyed

EUR/USD oscillates narrowly as investors await Eurozone Retail Sales for fresh cues.
The risk profile is highly adverse amid escalating hawkish Fed bets.
ECB members are advocating for two more interest rate hikes ahead.

Sagar Dua FXStreet

The EUR/USD pair displays a lackluster performance below the round-level resistance of 1.0800 in the Asian session. The major currency pair has turned sideways, following the footprints of the subdued US Dollar Index (DXY). The market participants expect a volatility contraction in the USD Index after a one-sided vertical move on Friday.

S&P500 futures show losses in the Tokyo session, portraying a risk-off market mood. A minor military action in US-China has further trimmed the risk appetite of the market participants. The return generated by the 10-year US Treasury bonds has witnessed a minor decline but is still holding the 3.55% support.

Bumper United States Nonfarm Payrolls (NFP) data has faded the expectations that the Federal Reserve (Fed) will even consider a pause in its policy tightening spell. Considering an upbeat US labor market, Fed chair Jerome Powell might consider hiking interest rates further as the battle against stubborn inflation could be deadly ahead. For more clarity, investors will watch the speech from Fed chair Jerome Powell, which is scheduled for Tuesday.

On the Eurozone front, after a bumper interest rate hike by the European Central Bank (ECB), the street expects that ECB President Christine Lagarde will continue hiking rates as the road to 2% inflation is far from over.

ECB policymaker Peter Kazimir said on Friday, "I don't think the March rate hike will be the last.” Also, ECB Governing Council member Pierre Wunsch supported the view of hawkish interest rate guidance and told Reuters on Friday that the ECB won't go from a 50 basis points (bps) rate hike in March to a zero in May. Wunsch added that a 25 bps or a 50 bps hike is possible in May.

Meanwhile, the Eurozone Retail Sales data will remain in focus. The economic data is expected to contract by 2.7% from a prior contraction of 2.8% on an annual basis.

EUR/USD

Overview
Today last price	1.0794
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.0793

Trends
Daily SMA20	1.0842
Daily SMA50	1.0677
Daily SMA100	1.032
Daily SMA200	1.0319

Levels
Previous Daily High	1.094
Previous Daily Low	1.0793
Previous Weekly High	1.1033
Previous Weekly Low	1.0793
Previous Monthly High	1.093
Previous Monthly Low	1.0483
Daily Fibonacci 38.2%	1.0849
Daily Fibonacci 61.8%	1.0884
Daily Pivot Point S1	1.0744
Daily Pivot Point S2	1.0695
Daily Pivot Point S3	1.0597
Daily Pivot Point R1	1.0891
Daily Pivot Point R2	1.0989
Daily Pivot Point R3	1.1038

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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