• EUR/USD continues to notch higher  on Thursday in the Asian session
  • US Treasury yields undermine the demand for the US dollar.
  • US Dollar Index retreats towards a two-week low on Powell’s comments.

The selling tone surrounding the US dollar amid falling US Treasury yields keeps EUR/USD on the verge of daily gains. After touching the low of 1.1753, the pair continues to march higher since the beginning of the week 

At the time of writing, the EUR/USD is trading at 1.1855, up 0.11% on the day.

The successive gains in  EUR/USD were primarily credited to the downbeat performance of the US dollar.  The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, remained on the backfoot amid falling US Treasury yields. The tug of war between growth and inflationary concerns took a toll on Fed’s latest monetary policy’s meeting. 

The Fed left the target range for its federal rates unchanged at 0-0.25% and assets purchasing also remained unchanged at the current pace of  $120 billion.

In addition to that, Fed Chair Jerome Powell cautioned that although there has been substantial improvement in the economy still there is a way to go before the central bank would adjust its ultra-accommodative policy, which also kept investors away from the US dollar


On the other hand, the single currency is boosted by the upbeat economic data and general risk-on mood. The IHS Markit Eurozone Composite PMI rose to 60.6 in June from 59.5 in the previous month.
 
Being said, the stronger economic data in the US and  Eurozone improved the risk appetite and drove market participants towards riskier assets. The risk-on market sentiment favors EUR/USD upside gains.
The important data on the economic calendar to look out for would be the EURO Unemployment Rate, Consumer Confidence data, and German Haromized Inflation Rate. The US Gross Domestic Product (GDP) and Initial Jobless Claims would also be on the trader’s radar.

EUR/USD additional levels

EUR/USD

Overview
Today last price 1.1854
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.1844
 
Trends
Daily SMA20 1.1819
Daily SMA50 1.1979
Daily SMA100 1.1975
Daily SMA200 1.2008
 
Levels
Previous Daily High 1.185
Previous Daily Low 1.1772
Previous Weekly High 1.183
Previous Weekly Low 1.1752
Previous Monthly High 1.2254
Previous Monthly Low 1.1845
Daily Fibonacci 38.2% 1.182
Daily Fibonacci 61.8% 1.1802
Daily Pivot Point S1 1.1795
Daily Pivot Point S2 1.1745
Daily Pivot Point S3 1.1717
Daily Pivot Point R1 1.1872
Daily Pivot Point R2 1.1899
Daily Pivot Point R3 1.1949

 


 

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