EUR/USD stays depressed near 1.1670 ahead of Powell

EUR/USD keeps the offered note unchanged on Tuesday.
ECB’s Lagarde favoured the current accommodative stance in the ECB.
Chief Powell testifies before the Senate later in the session.

Pablo Piovano FXStreet

EUR/USD remains well offered and trades at shouting distance from YTD lows in the proximity of 1.1660.

EUR/USD targets the YTD lows near 1.1660

EUR/USD extends the bearish move for yet another session on turnaround Tuesday and at the same time enters the fourth consecutive week with losses.

Higher US yields and the intense recovery in the greenback propelled the US Dollar Index (DXY) to new 2021 highs near 93.80 ahead of the testimony by Fed’s Powell before the Senate.

Earlier at the ECB Forum in Sintra, President Lagarde defended the current accommodative stance in the central bank, which will ensure a safe exit from the coronavirus pandemic and is expected to help bring inflation back to the bank’s goal.

Later in the session, and apart from Powell, the Conference Board will publish it Consumer Confidence gauge for the current month.

EUR/USD levels to watch

So far, spot is losing 0.19% at 1.1673 and faces the next up barrier at 1.1755 (weekly high Sep.22) seconded by 1.1782 (55-day SMA) and finally 1.1845 (weekly high Sep.14). On the other hand, a break below 1.1672 (monthly low Sep.28) would target 1.1663 (2021 low Aug.20) en route to 1.1602 (monthly low Nov.4 2020).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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