EUR/USD regains traction near 1.1650, focus stays on US docket

The Euro (EUR) is clawing back ground on Tuesday, with EUR/USD rebounding after Monday’s hiccup and edging toward the 1.1650 area. Continued upside could put a test for the monthly highs near 1.1740 (August 22) back on the radar.

Dollar under pressure

The US Dollar (USD) is losing traction, giving back part of Monday’s gains, as traders digest renewed political drama. President Trump’s attempt to fire FOMC Governor Lisa Cook has once again stirred concerns about the Fed's independence.

Yields and data in focus

Mixed US Treasury yields add to the softer tone in the Greenback, while 10-year bund yields hover just below 2.75%. On the data front, US Durable Goods Orders slumped 2.8% in July vs. the prior month. Later today, housing numbers (FHFA, Case-Shiller) and Consumer Confidence measured by the Conference Board will take the spotlight.

Key levels

Upside targets for EUR/USD start at the August top at 1.1742 (August 22 ). A break above there could clear the path toward the weekly high of 1.1788 (July 24) and the 2025 ceiling of 1.1830 (July 1).

On the downside, initial support lies at the provisional 100-day SMA at 1.1495, seconded by the August floor of 1.1391 (August 25). Deeper losses could expose the weekly trough of 1.1210 (May 29) ahead of the May base at 1.1064 (May 12), all prior to the 1.1000 threshold.