EUR/USD pares daily gains, retreats to 1.2030 area amid modest USD recovery

EUR/USD lost its traction after climbing to fresh multi-week highs.
US Dollar Index posts modest daily gains near 91.20.
Wall Street's main indexes suffer heavy losses on Tuesday.

Eren Sengezer FXStreet

The EUR/USD pair climbed to its highest level since early March at 1.2080 on Tuesday but reversed its direction during the American trading hours. As of writing, the pair was virtually unchanged on a daily basis at 1.2030.

DXY capitalizes on safe-haven flows

Earlier in the day, EUR/USD preserved its bullish momentum as the greenback struggled to find demand. With the market mood souring in the second half of the day, the USD started to attract investors as a safe haven and the US Dollar Index (DXY) turned positive on the day.

Reflecting the risk-off market environment, the S&P 500 and the Dow Jones Industrial Average both lose 0.8%. Meanwhile, the DXY is up 0.15% at 91.22.

There won't be any significant macroeconomic data releases from the euro area on Wednesday and the USD's market valuation is likely to continue to drive EUR/USD's movements ahead of the European Central Bank's (ECB) policy announcements on Thursday.

Previewing the ECB's April policy meeting, “the ECB’s latest announcement – that purchases under the Pandemic Emergency Purchase Programme (PEPP) over the next quarter will be conducted at a significantly higher pace than during the first months of this year – reinforces our view that it will remain highly accommodative for longer," said UOB Group economist Lee Sue Ann.

Technical levels to watch for

EUR/USD

Overview
Today last price	1.2026
Today Daily Change	-0.0012
Today Daily Change %	-0.10
Today daily open	1.2038

Trends
Daily SMA20	1.1859
Daily SMA50	1.1962
Daily SMA100	1.2059
Daily SMA200	1.1917

Levels
Previous Daily High	1.2048
Previous Daily Low	1.1943
Previous Weekly High	1.1995
Previous Weekly Low	1.1871
Previous Monthly High	1.2113
Previous Monthly Low	1.1704
Daily Fibonacci 38.2%	1.2008
Daily Fibonacci 61.8%	1.1983
Daily Pivot Point S1	1.1971
Daily Pivot Point S2	1.1904
Daily Pivot Point S3	1.1866
Daily Pivot Point R1	1.2077
Daily Pivot Point R2	1.2115
Daily Pivot Point R3	1.2182

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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