EUR/USD recovery remains fragile towards 1.1750 despite softer USD

EUR/USD attempts recovery on Tuesday after the previous day’s fallout.
US Dollar Index pares initial gains, still remains elevated above 93.00.
Indebted China’s Evergrande fears, pre-Fed anxiety persists.

Rekha Chauhan Independent Analyst

EUR/USD trades mildly higher in the Asian session on Tuesday amid cautious optimism. The pair remained mostly consolidated at the beginning of the day before comprising a sudden uptick during the trading session and touched an intraday high of 1.1740.

At the time of writing, the EUR/USD is trading at 1.1734, up 0.08% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, subsided from the initial higher levels to trade near 92.30 following the US House Speaker Pelosi comments.

In the latest development, the US House Speaker Nancy Pelosi said she hopes for a $3.5 trillion infrastructure bill but remained prepared for any adjustment. The prospects of House and Senate passage of the bill this week remained bleak over the disagreement among Democrats in both houses.

An uptick in the US 10-year benchmark yields at 1.32% limits the downside in the greenback, as investors digest China’s property giant Evergrande default risks and FOMC meeting anxiety.

Meanwhile, Fed Chairman Jerome Powell is expected to pull back stimulus in the two-day FOMC meeting on Wednesday by reducing monthly bond purchases while keeping in mind that it should not be considered as a signal to a sooner rate hike.

It is worth noting that, S&P 500 futures are trading at 4,361, up 0.30% for the day.

Investors turn their attention to US Current Account data, Housing Start, and Building Permits to take fresh trade insight, as the EUR docket remains dry.

EUR/USD levels to watch

EUR/USD

Overview
Today last price	1.1734
Today Daily Change	0.0008
Today Daily Change %	0.07
Today daily open	1.1726

Trends
Daily SMA20	1.1805
Daily SMA50	1.1794
Daily SMA100	1.1923
Daily SMA200	1.1989

Levels
Previous Daily High	1.1737
Previous Daily Low	1.17
Previous Weekly High	1.1846
Previous Weekly Low	1.1724
Previous Monthly High	1.19
Previous Monthly Low	1.1664
Daily Fibonacci 38.2%	1.1723
Daily Fibonacci 61.8%	1.1714
Daily Pivot Point S1	1.1705
Daily Pivot Point S2	1.1684
Daily Pivot Point S3	1.1669
Daily Pivot Point R1	1.1741
Daily Pivot Point R2	1.1757
Daily Pivot Point R3	1.1778

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

AUD/USD holds above 0.70 as RBA hike becomes a done deal

The Aussie Dollar dives 0.10% versus the US Dollar as market sentiment deteriorates amid fading US-Iran peace hopes, pushing US bond yields higher while US equity markets fall. Also, price action remained subdued, ahead of the Reserve Bank of Australia monetary policy decision. The AUD/USD trades at 0.7016.

USD/JPY climbs back toward 158.00 after BoJ minutes amid firm USD

USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.

Gold tumbles below $4.150 as US bond yields, oil prices rise

Gold price falls to near $4,125 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising US Treasury yields and expectations of further Federal Reserve interest rate hikes sap demand for the non-yielding metal.

HBAR, QNT rally as AI safety and tokenized deposits fuel institutional momentum

Hedera (HBAR) and Quant (QNT) are among the crypto market’s strongest performers on Monday, as fresh developments around artificial intelligence (AI) and tokenized banking drive renewed institutional attention. HBAR briefly surged above $0.130 before settling around $0.123, gaining 30% over the past 24 hours.

The week ahead: A key moment for the global economy as threats rise

UK diesel hits a record, as economic concerns rise. The market expects an aggressive Fed rate hiking cycle, but is it necessary? Oil supply concerns ease, even as oil prices rise. What’s next for the AI trade.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.