Investors are waiting for a new catalyst to provide direction, causing the EUR/USD to remain level.

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• EUR/USD has turned sideways as investors are awaiting a fresh trigger for further guidance.

The pair currently trades last at 1.12278.

The previous day high was 1.1245 while the previous day low was 1.1204. The daily 38.2% Fib levels comes at 1.1229, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.122, expected to provide support.

The EUR/USD pair has turned extremely choppy above the round-level resistance of 1.1200 in the Asian session. The major currency pair has turned sideways as investors are awaiting the United States Retail Sales (June) data for further guidance.

S&P500 futures have generated some losses in the Tokyo session, portraying caution among market participants as the second-quarter result season has kicked off. US equities also faced some pressure on Friday as investors are worried that corporate earnings could remain volatile due to higher aggressive policy-tightening by the Federal Reserve (Fed) and tight credit conditions by commercial banks to maintain asset quality.

The US Dollar Index (DXY) is demonstrating a squeeze in volatility after building a base marginally below 100.00. The USD Index is expected to deliver a power-pack action after the release of the US Retail Sales data. As per the consensus, monthly retail demand is expected to expand at a higher pace of 0.5% vs. the former release of 0.3%. Retail demand excluding automobiles is seen expanding by 0.3% against the former release of 0.1%.

Meanwhile, the Euro has got extreme strength as the European Central Bank (ECB) is expected to conclude its rate-hiking spell beyond July as inflation is hotter in Eurozone. Headline inflation in the shared continent is at 5.5% and the core inflation that excludes volatile oil and food prices is at 5.4%, stretched from the desired rate of 2%.

Contrary, economists at Nordea believe that the European Central Bank continues to see more tightening warranted, and another hike in July appears a done deal but it will be the last one in the current cycle.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1227 at the time of writing. Pair opened at 1.1227 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0966, 50 SMA 1.087, 100 SMA @ 1.0854 and 200 SMA @ 1.0653.

The previous day high was 1.1245 while the previous day low was 1.1204. The daily 38.2% Fib levels comes at 1.1229, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.122, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1206, 1.1185, 1.1165
• Pivot resistance is noted at 1.1247, 1.1266, 1.1287

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