EUR/USD loses bullish momentum, clings to modest gains around 1.0930


  • EUR/USD looks to close third straight day higher.
  • EU's Dombrovskis says ESM strongly supports Franco-German recovery fund proposal.
  • US Dollar Index steadies around 99.50 after FOMC Chairman Powell's testimony.

After gaining nearly 100 pips on Monday, the EUR/USD pair touched its highest level in two weeks at 1.0976 on Tuesday. With the trading action turning subdued in the American session, the pair has gone into a consolidation phase and was last seen up 0.15% on the day at 1.0928.

The upbeat market mood at the start of the week and the Franco-German recovery fund proposal provided a boost to the shared currency. Earlier in the day, European Commission Vice President Valdis Dombrovskis said the European Stability Mechanism (ESM) is strongly supporting the proposal. The Commission is looking to present the proposal at the European summit scheduled for May 27th.

USD weakness persists

On the other hand, the greenback is having a difficult time finding demand in the absence of significant macroeconomic drivers. The only data from the US revealed that Housing Starts in April declined at a record pace of 30.2% in April but was largely ignored by the market participants.

In the meantime, FOMC Chairman Jerome Powell refrained from delivering any surprising remarks about the economic or the policy outlook during his testimony before the Senate Banking Committee. Powell reiterated that the Fed remains committed to using all the tools available to continue to support the economy. At the moment, the US Dollar Index is posting small daily losses near 99.50.

On Wednesday, the European economic docket will feature the Consumer Price Index data for April. Later in the day, the FOMC will publish the minutes of its April 28-29 meeting.

Technical levels to watch for

EUR/USD

Overview
Today last price 1.0931
Today Daily Change 0.0016
Today Daily Change % 0.15
Today daily open 1.0915
 
Trends
Daily SMA20 1.0849
Daily SMA50 1.0907
Daily SMA100 1.0976
Daily SMA200 1.1019
 
Levels
Previous Daily High 1.0927
Previous Daily Low 1.08
Previous Weekly High 1.0897
Previous Weekly Low 1.0775
Previous Monthly High 1.1039
Previous Monthly Low 1.0727
Daily Fibonacci 38.2% 1.0879
Daily Fibonacci 61.8% 1.0849
Daily Pivot Point S1 1.0834
Daily Pivot Point S2 1.0753
Daily Pivot Point S3 1.0707
Daily Pivot Point R1 1.0962
Daily Pivot Point R2 1.1008
Daily Pivot Point R3 1.1089

 

 

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