On Wednesday, the EURUSD pair declined slightly to 1.07841, as the US dollar saw some moderate gains and exerted pressure on the exchange rate.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- EUR/USD edges lower on Wednesday and is pressured by a modest USD uptick.
The pair currently trades last at 1.07841.
The previous day high was 1.0824 while the previous day low was 1.0755. The daily 38.2% Fib levels comes at 1.0797, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0781, expected to provide support.
The EUR/USD pair comes under some selling pressure on Wednesday and moves further from over a three-week peak, around the 1.0825 region touched the previous day. Spot prices remain on the defensive heading into the European session and currently trade around the 1.0780-1.0775 area, down nearly 0.15% for the day.
A generally softer tone around the US equity futures drives some haven flows towards the US Dollar (USD), which, in turn, is seen as a key factor dragging the EUR/USD pair lower. Any meaningful USD recovery, from its lowest level since May 17 set on Tuesday, still seems elusive in the wake of firming expectations that the Federal Reserve (Fed) will skip hiking interest rates at the end of a two-day policy meeting later today.
The market bets for an imminent pause in the Fed’s year-long policy tightening cycle were reaffirmed by softer US consumer inflation figures on Tuesday. In fact, the headline CPI merely rose in May and the annual rate decelerated to the slowest pace since March 2021. That said, the year-on-year inflation rate, at 4.0%, is still twice the Fed’s 2% target and kept hopes alive for additional 25 bps lift-off at the July FOMC meeting.
This, in turn, remains supportive of elevated US Treasury bond yields, which, along with some repositioning trade ahead of the key central bank event risk, is seen lending some support to the Greenback. That said, the recent hawkish comments by a slew of influential European Central Bank (ECB) officials suggest that there is still a way to go to raise borrowing costs despite a fall in the headline Eurozone CPI to 6.1% in May.
It is worth recalling that ECB President Christine Lagarde indicated last week that additional interest rate rises were likely as, so far, there was no clear evidence that underlying inflation has peaked. This could underpin the shared currency and lend support to the EUR/USD pair. Traders might also prefer to wait on the sidelines ahead of the key central bank event risks – the FOMC decision on Wednesday and the ECB meeting on Thursday.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0781 at the time of writing. Pair opened at 1.0793 and is trading with a change of -0.11 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0781 |
| 1 | Today Daily Change | -0.0012 |
| 2 | Today Daily Change % | -0.1100 |
| 3 | Today daily open | 1.0793 |
The pair is trading above its 20 Daily moving average @ 1.0749, below its 50 Daily moving average @ 1.0879 , below its 100 Daily moving average @ 1.0806 and above its 200 Daily moving average @ 1.0529
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0749 |
| 1 | Daily SMA50 | 1.0879 |
| 2 | Daily SMA100 | 1.0806 |
| 3 | Daily SMA200 | 1.0529 |
The previous day high was 1.0824 while the previous day low was 1.0755. The daily 38.2% Fib levels comes at 1.0797, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0781, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.0757, 1.0722, 1.0689
- Pivot resistance is noted at 1.0826, 1.0859, 1.0895
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0824 |
| Previous Daily Low | 1.0755 |
| Previous Weekly High | 1.0787 |
| Previous Weekly Low | 1.0667 |
| Previous Monthly High | 1.1092 |
| Previous Monthly Low | 1.0635 |
| Daily Fibonacci 38.2% | 1.0797 |
| Daily Fibonacci 61.8% | 1.0781 |
| Daily Pivot Point S1 | 1.0757 |
| Daily Pivot Point S2 | 1.0722 |
| Daily Pivot Point S3 | 1.0689 |
| Daily Pivot Point R1 | 1.0826 |
| Daily Pivot Point R2 | 1.0859 |
| Daily Pivot Point R3 | 1.0895 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
