EUR/USD without clear direction fails to hold above 1.1600

US dollar strengthens during the American session as stocks slide, despite lower yields.
EUR/USD finds resistance at the 20-day simple moving average.

Matías Salord FXStreet

The EUR/USD pair is moving sideways on Tuesday, unable to hold above 1.1600. Recently it printed a fresh three day high at 1.1608 but it quickly pulled back toward daily lows. It is hovering under 1.1580 wihtouy a clear direction.

The greenback gained momentum during the America session across the board, even as US yields remained near recent lows. The DXT is up 0.05%, ending a two-day negative streak.

US economic data showed the PPI rose mostly in line with expectations, having no significant impact on markets. On Wednesday, CPI data is due. Those numbers will be important for considerations about the next steps of the Federal Reserve. Also, market participants await President Biden’s decision regarding Fed’s Chair. The specialized media mentioned Brainard (a dovish) as a potential replacement for Powell.

EUR/USD upside capped by a strong area

The rally from YTD lows found resistance around 1.1600/10, area that contains the 20-day moving average. Slightly above at 1.1620 there is another relevant horizontal resistance. A daily close above 1.1620 would open the doors the more gains.

While under 1.1600, the upside seems limited. Support levels might be located at 1.1565 and 1.1545. If the price rmeais under 1.1550, the 1.1520 critical support are will liekyl be challenged.

Technical levels

EUR/USD

Overview
Today last price	1.1583
Today Daily Change	-0.0006
Today Daily Change %	-0.05
Today daily open	1.1589

Trends
Daily SMA20	1.1602
Daily SMA50	1.1675
Daily SMA100	1.1744
Daily SMA200	1.1889

Levels
Previous Daily High	1.1595
Previous Daily Low	1.1551
Previous Weekly High	1.1616
Previous Weekly Low	1.1513
Previous Monthly High	1.1692
Previous Monthly Low	1.1524
Daily Fibonacci 38.2%	1.1578
Daily Fibonacci 61.8%	1.1568
Daily Pivot Point S1	1.1561
Daily Pivot Point S2	1.1534
Daily Pivot Point S3	1.1517
Daily Pivot Point R1	1.1606
Daily Pivot Point R2	1.1622
Daily Pivot Point R3	1.165

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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