For the second day in a row, there is increased interest from buyers in the EURUSD currency pair at a rate of 1.07786 due to the recent decline in the value of the USD.

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• EUR/USD attracts buyers for the second successive day in the wake of fresh USD selling.

The pair currently trades last at 1.07786.

The previous day high was 1.079 while the previous day low was 1.0733. The daily 38.2% Fib levels comes at 1.0768, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0755, expected to provide support.

The EUR/USD pair regains positive traction following the previous day’s late pullback from a two-and-half-week top and builds on its steady intraday ascent through the Asian session on Tuesday. Spot prices, however, remain below the 100-day Simple Moving Average (SMA) resistance and currently trade around the 1.0780 region, up over 0.20% for the day.

The US Dollar (USD) comes under some renewed selling pressure and drops to its lowest level since May 22, which, in turn, is seen as a key factor pushing the EUR/USD pair higher for the second straight day. Dovish rhetoric by a slew of influential Federal Reserve (Fed) officials boosted market expectations for an imminent pause in the US central bank’s year-long rate-hiking cycle. This, along with a fresh leg down in the US Treasury bond yields, continues to exert some downward pressure on the Greenback.

The shared currency, on the other hand, draws support from rising bets for a further policy tightening by the European Central Bank (ECB) and is seen as another factor acting as a tailwind for the EUR/USD pair. In fact, ECB President Christine Lagarde indicated earlier last week that additional interest rate rises were likely as, so far, there was no clear evidence that underlying inflation has peaked. This, in turn, suggests that the ECB is not done raising rates despite a fall in consumer inflation and favours bullish traders.

Investors, however, might refrain from placing aggressive bets and prefer to wait on the sidelines ahead of this week’s key central bank event risks. The Fed is scheduled to announce the highly-anticipated monetary policy decision on Wednesday, which will be followed by the ECB meeting on Thursday. In the meantime, traders on Tuesday will take cues from the release of the German ZEW Economic Sentiment and the latest US consumer inflation figures to grab short-term opportunities around the EUR/USD pair.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0779 at the time of writing. Pair opened at 1.0756 and is trading with a change of 0.21 % .

The pair is trading above its 20 Daily moving average @ 1.0753, below its 50 Daily moving average @ 1.0882 , below its 100 Daily moving average @ 1.0807 and above its 200 Daily moving average @ 1.0524

The previous day high was 1.079 while the previous day low was 1.0733. The daily 38.2% Fib levels comes at 1.0768, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0755, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.073, 1.0703, 1.0673
• Pivot resistance is noted at 1.0787, 1.0817, 1.0843

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