The EUR/USD pair is seen trying hard to sustain the recovery from Yellen’s hawkish testimony-driven sell-off to 1.0560 levels, and now makes headways towards 1.06 handle in early Europe.
EUR/USD forms a doji on daily sticks
Currently, the spot now peeks into the green zone at 1.0580, testing session highs posted previously at 1.0587, where the daily pivot resistance intersects. The main currency pair is on a steady recovery path amid a phase of upside consolidation phase in the greenback against its main competitors, as the USD bulls take a breather from yesterday’s extensive rally fuelled by Yellen’s comments that signaled Fed’s growing appetite for monetary policy tightening in the near-term.
However, the recovery may lack follow-through as a fresh round of USD buying is expected once the European traders hit their desks and react to yesterday’s testimony delivered by the Fed Chair Yellen before the Senate Banking Committee. While a slew of disappointing macro updates from the Eurozone and Germany released a day earlier continue to undermine the sentiment around the euro.
Later today, the spot remains at the mercy of the USD dynamics in wake of a fresh batch of US economic releases and Fedspeaks due on the cards in the NA session. In the meantime, the Eurozone trade balance data is likely to keep the EUR traders busy.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0602/08 (5 & 50-DMA). A break beyond the last, doors will open for a test of 1.0658 (10-DMA) and from there to 1.0676 (100-DMA). On the flip side, the immediate support is placed at 1.0561 (post-Yellen low) below which 1.0520 (Jan 6 low) and 1.0500 (psychological levels) could be tested.
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.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.