The currency pair EURUSD, which was trading at 1.05841, is now moving back up towards 1.0600 after experiencing losses earlier in the day.
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- EUR/USD reverses toward 1.0600, recovering from intraday losses.
The pair currently trades last at 1.05841.
The previous day high was 1.0656 while the previous day low was 1.0575. The daily 38.2% Fib levels comes at 1.0606, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0625, expected to provide resistance.
EUR/USD recovers its intraday losses, trading around 1.0590 during the Asian trading session on Tuesday. This pair faced challenges despite comments from European Central Bank (ECB) President Christine Lagarde stating that interest rates will remain restrictive for an extended period.
However, Lagarde also noted that inflation is expected to stay “too high for too long.” However, the ECB is facing a difficult situation as it seeks to balance the need to address rising inflation while not adversely affecting the Eurozone’s uneven domestic economy. This delicate balancing act is likely contributing to the downward pressure on the euro against the US dollar (USD).
The US Dollar Index (DXY) holds ground near 106.00, although it’s close to its recent high since November. The US Dollar (USD) continues to display strength, driven in part by a combination of cautious market sentiment and rising US Treasury yields.
The yield on the 10-year US Treasury note has climbed to 4.55%, a level not seen since October 2007.
The expectation of higher interest rates being sustained for an extended period is based on the resilience of the US economy. Moreover, the US Federal Reserve (Fed) signaled further interest rate hikes, if necessary, reinforcing the strengthening of the buck.
Recent warnings from US President Joe Biden and a senior adviser about the potential consequences of a federal government shutdown have also added to market concerns. They highlighted the possible widespread difficulties that could arise from a shutdown, including the loss of food benefits for nearly 7 million low-income women and children.
While there was a prior agreement between President Biden and House Speaker Kevin McCarthy on government spending levels, the Republican-controlled House of Representatives may attempt to pass significant budget cuts this week.
These proposed cuts would require approval by the Democratic-controlled Senate, which is expected to reject them. Failure to reach an agreement between both houses could result in a partial government shutdown by the following Sunday.
Investors will likely monitor the release of key economic data, including the US Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, and the Eurozone’s Core Harmonized Index of Consumer Prices (HICP), scheduled for Friday.
These datasets are expected to provide crucial insights into inflationary pressures in both economies and may influence trading decisions in the EUR/USD pair.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0593 at the time of writing. Pair opened at 1.0593 and is trading with a change of 0.0 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0593 |
| 1 | Today Daily Change | 0.0000 |
| 2 | Today Daily Change % | 0.0000 |
| 3 | Today daily open | 1.0593 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0727, 50 SMA 1.0872, 100 SMA @ 1.0873 and 200 SMA @ 1.083.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0727 |
| 1 | Daily SMA50 | 1.0872 |
| 2 | Daily SMA100 | 1.0873 |
| 3 | Daily SMA200 | 1.0830 |
The previous day high was 1.0656 while the previous day low was 1.0575. The daily 38.2% Fib levels comes at 1.0606, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0625, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.056, 1.0527, 1.0479
- Pivot resistance is noted at 1.0641, 1.0689, 1.0722
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0656 |
| Previous Daily Low | 1.0575 |
| Previous Weekly High | 1.0737 |
| Previous Weekly Low | 1.0615 |
| Previous Monthly High | 1.1065 |
| Previous Monthly Low | 1.0766 |
| Daily Fibonacci 38.2% | 1.0606 |
| Daily Fibonacci 61.8% | 1.0625 |
| Daily Pivot Point S1 | 1.0560 |
| Daily Pivot Point S2 | 1.0527 |
| Daily Pivot Point S3 | 1.0479 |
| Daily Pivot Point R1 | 1.0641 |
| Daily Pivot Point R2 | 1.0689 |
| Daily Pivot Point R3 | 1.0722 |
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