The EURUSD, currently at 1.09153, is fluctuating above 1.0900 as attention turns to the testimony of Fed Powell.

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• EUR/USD is oscillating above 1.0900 as the focus shifts to Fed Powell’s testimony.

The pair currently trades last at 1.09153.

The previous day high was 1.0946 while the previous day low was 1.0893. The daily 38.2% Fib levels comes at 1.0913, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0926, expected to provide resistance.

The EUR/USD pair is demonstrating a non-directional performance above the round-level support of 1.0900 in the Asian session. The major currency pair is following the footprints of the sideways US Dollar Index (DXY), which is expected to provide action after Federal Reserve (Fed) chair Jerome Powell’s testimony.

S&P500 futures are showing nominal gains generated in Tokyo after reporting bearish sentiment on Tuesday. US equities posted negative returns on Tuesday as investors wrapped up their positions quickly after a long weekend.

The US Dollar Index has turned sideways after retreating from the 102.80 resistance awaiting Fed Powell’s testimony. No doubt, Fed Powell has already delivered hawkish guidance as labor market conditions are still tight and inflationary pressures are twice the desired rate. Investors would like to see whether Fed Powell would stand on guidance already delivered as the street is anticipating only one rate hike by year-end while the central bank guided two more interest rates.

On the Eurozone front, major contributors to stubbornly high inflation are the cost of food, alcohol, and tobacco while rising prices of services are the second contributor. Eurozone inflation has been recorded at 6.1% in its final reading, which is still thrice the required 2% rate and supports the need for further interest rate hikes.

The European Central Bank (ECB) has already pushed interest rates to 4% in June and ECB President Christine Lagarde has confirmed that a rate hike in the July meeting is appropriate.

Meanwhile, ECB policymaker Boris Vujčić has cited that regarding future policy actions, the central bank has to consider the risk of doing too much vs. too little, adding that a soft landing might not be possible.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0916 at the time of writing. Pair opened at 1.0918 and is trading with a change of -0.02 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0777, 50 SMA 1.088, 100 SMA @ 1.0808 and 200 SMA @ 1.0551.

The previous day high was 1.0946 while the previous day low was 1.0893. The daily 38.2% Fib levels comes at 1.0913, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0926, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0892, 1.0865, 1.0838
• Pivot resistance is noted at 1.0945, 1.0972, 1.0999

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