EUR/USD remains on the defensive below 1.1400 mark post-US data, ahead of Powell’s speech


  • A modest USD uptick prompts some profit-taking amid overbought conditions.
  • The corrective slide remained limited in the wake of disappointing US macro data.
  • Tuesday’s key focus remains on the Fed Chair Jerome Powell’s scheduled speech.

The EUR/USD pair held on the defensive below the 1.1400 handle and had a rather muted reaction to disappointing US macro releases. 

Having touched a fresh three-month high level of 1.1412, the pair started losing positive momentum and ticked lower through the European trading session. The downtick lacked any obvious fundamental catalyst and could be solely attributed a modest US Dollar rebound from multi-month lows. 

With investors still digesting the latest dovish shift by the FOMC, traders seemed inclined to lighten their bearish USD bets ahead of the Fed Chair Jerome Powell's speech and seemed to be the only factor prompting some profit-taking from near-term overbought conditions. 

Meanwhile, the USD uptick lacked any strong conviction the wake of the latest disappointment from the Conference Board's Consumer Confidence Index, which dropped to 121.5 for June as compared to the previous month's downwardly revised reading of 131.3. 

Adding to this, new home sales plunged 7.8% in May, missing consensus estimates by a big margin and also worse than a drop of 3.7% recorded in the previous month, while Richmond Manufacturing Index fell to 3 for June as against market expectations for a steady reading of 5.

The data, however, failed to provide any meaningful impetus as the key focus remains on Powell's scheduled speech, which might provide some fresh clues over the possibility of a rate cut move at the upcoming July meeting and might play an important role in providing a fresh directional impetus. 

Technical levels to watch

EUR/USD

Overview
Today last price 1.1391
Today Daily Change -0.0007
Today Daily Change % -0.06
Today daily open 1.1398
 
Trends
Daily SMA20 1.1251
Daily SMA50 1.1221
Daily SMA100 1.1261
Daily SMA200 1.1351
Levels
Previous Daily High 1.1404
Previous Daily Low 1.1367
Previous Weekly High 1.1378
Previous Weekly Low 1.1181
Previous Monthly High 1.1266
Previous Monthly Low 1.1107
Daily Fibonacci 38.2% 1.139
Daily Fibonacci 61.8% 1.1381
Daily Pivot Point S1 1.1376
Daily Pivot Point S2 1.1353
Daily Pivot Point S3 1.1339
Daily Pivot Point R1 1.1413
Daily Pivot Point R2 1.1427
Daily Pivot Point R3 1.145

 

 

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