The EURUSD, currently at 1.09325, has experienced two consecutive days of decline and is being held back by the strength of the USD.
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- EUR/USD drifts lower for the second successive day and is weighed down by a stronger USD.
The pair currently trades last at 1.09325.
The previous day high was 1.1012 while the previous day low was 1.0949. The daily 38.2% Fib levels comes at 1.0973, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0988, expected to provide resistance.
The EUR/USD pair extends the overnight retracement slide from a six-week peak – levels just above the 1.1000 psychological mark – and drifts lower for the second successive day on Friday. Spot prices drop to a two-day low during the Asian session and currently trade around the 1.0940-1.0935 region, down nearly 0.20% for the day.
The US Dollar (USD) regains positive traction following a brief consolidation on the last day of the week and recovers further from its lowest level since May 11 touched on Thursday, which, in turn, is seen exerting pressure on the EUR/USD pair. The USD uptick could be attributed to Federal Reserve (Fed) Chair Jerome Powell’s hawkish outlook, backing the case for more interest rate hikes, albeit at a “careful pace”, to combat stubbornly high inflation.
During the second day of congressional testimony, Powell added that the Fed doesn’t see rate cuts happening any time soon and is going to wait until it is confident that inflation is moving down to the 2% target. This continues to underpin the Greenback and, to a larger extent, overshadows Thursday’s dismal US macro data, which showed that Initial Jobless Claims held steady at a 20-month high last week and pointed to a softening labor market.
Apart from this, a generally weaker tone around the equity markets is seen as another factor benefitting the safe-haven buck and contributing to the offered tone surrounding the EUR/USD pair. A slew of interest rate hikes and a more hawkish outlook by major central banks fuel concerns about economic headwinds stemming from rapidly rising borrowing costs. This, along with the worsening US-China relations, temper investors’ appetite for riskier assets.
Hence, the market focus will now shift to the release of the flash PMI prints from the Eurozone and the US. This will provide fresh cues about the health of the global economy and provide some meaningful impetus to the EUR/USD pair. In the meantime, expectations for additional interest rate hikes by the European Central Bank (ECB) might hold back traders from placing aggressive bearish bets and help limit the downside, for the time being.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.094 at the time of writing. Pair opened at 1.0956 and is trading with a change of -0.15 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0940 |
| 1 | Today Daily Change | -0.0016 |
| 2 | Today Daily Change % | -0.1500 |
| 3 | Today daily open | 1.0956 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.08, 50 SMA 1.0878, 100 SMA @ 1.0808 and 200 SMA @ 1.0561.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0800 |
| 1 | Daily SMA50 | 1.0878 |
| 2 | Daily SMA100 | 1.0808 |
| 3 | Daily SMA200 | 1.0561 |
The previous day high was 1.1012 while the previous day low was 1.0949. The daily 38.2% Fib levels comes at 1.0973, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0988, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0932, 1.0909, 1.0869
- Pivot resistance is noted at 1.0996, 1.1036, 1.1059
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.1012 |
| Previous Daily Low | 1.0949 |
| Previous Weekly High | 1.0971 |
| Previous Weekly Low | 1.0733 |
| Previous Monthly High | 1.1092 |
| Previous Monthly Low | 1.0635 |
| Daily Fibonacci 38.2% | 1.0973 |
| Daily Fibonacci 61.8% | 1.0988 |
| Daily Pivot Point S1 | 1.0932 |
| Daily Pivot Point S2 | 1.0909 |
| Daily Pivot Point S3 | 1.0869 |
| Daily Pivot Point R1 | 1.0996 |
| Daily Pivot Point R2 | 1.1036 |
| Daily Pivot Point R3 | 1.1059 |
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