The EURUSD currency pair, which was trading at 1.09860, has lost most of its gains made during the day, as the USD Index has found temporary support.

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• EUR/USD has surrendered the majority of its intraday gains as the USD Index has found intermediate support.

The pair currently trades last at 1.09860.

The previous day high was 1.0991 while the previous day low was 1.0906. The daily 38.2% Fib levels comes at 1.0958, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0938, expected to provide support.

The EUR/USD pair has surrendered the majority of intraday gains added in the Asian session. The major currency pair has faced some selling pressure while attempting to recapture the psychological resistance of 1.1000. Late Wednesday, the shared currency pair reported a perpendicular rally, which was supported by a sell-off in the US Dollar Index (DXY).

S&P500 futures have generated some losses in Asia, carry-forwarded negative cues observed on Wednesday. On Wednesday, US equities faced immense pressure as Federal Reserve (Fed) chair Jerome Powell’s hawkish testimony weighed heavily on tech-savvy stocks.

The USD Index is looking for support after diving to near its crucial support of 102.00. The appeal for the USD index faded sharply as Fed Powell’s testimony provided clarity to investors about further policy action. Jerome Powell stated that the majority of policymakers are in favor of more interest rates this year. The focus of the central bank is to bring down inflation to 2% but it has a long way to go.

The major catalyst that has weighed pressure on the USD Index is the dovish commentary from Fed policymakers. Atlanta Fed President Raphael Bostic cited that the central bank should not raise interest rates further or it would risk “needlessly” sapping the strength of the economy. While Chicago Fed Bank President Austan Goolsbee favored allowing current interest rates required time to show their impact on the economy.

On the Eurozone front, the context of more interest rate hikes from the European Central Bank (ECB) is well supported as inflation has been confirmed above 6%. No doubt, price pressures have decelerated heavily but are still thrice the required rate of 2%. ECB President Christine Lagarde has already confirmed a rate hike in the July meeting.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0987 at the time of writing. Pair opened at 1.0986 and is trading with a change of 0.01 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0789, 50 SMA 1.088, 100 SMA @ 1.0808 and 200 SMA @ 1.0556.

The previous day high was 1.0991 while the previous day low was 1.0906. The daily 38.2% Fib levels comes at 1.0958, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0938, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0931, 1.0876, 1.0846
• Pivot resistance is noted at 1.1016, 1.1046, 1.1102

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