The EURUSD currency pair, currently trading at 1.10722, is having difficulty maintaining its first daily increase in five days at its lowest point in a span of two weeks.

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• EUR/USD struggles to defend the first daily gains in five at the lowest level in two weeks.

The pair currently trades last at 1.10722.

The previous day high was 1.1147 while the previous day low was 1.106. The daily 38.2% Fib levels comes at 1.1093, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1114, expected to provide resistance.

EUR/USD lacks upside momentum despite bouncing off a two-week low, mildly bid near 1.1075 heading into Tuesday’s European session. In doing so, the Euro pair benefits from the US Dollar’s retreat but hesitates in welcoming the pair buyers amid fears of a recession in the bloc.

US Dollar Index (DXY) retreats from a two-week high after cheering the comparatively better PMIs the previous day, down 0.08% intraday near 101.25 at the latest. With this, the greenback’s gauge versus the six major currencies bears the burden of China-inspired optimism, as well as doubt on the Federal Reserve’s (Fed) moves past July.

That said, headlines fueling hopes of China stimulus and bank intervention from Beijing seem to underpin the latest optimism. On the other hand, the US PMIs were better than their Western counterparts but weren’t impressive enough to keep the Fed on a rate hike trajectory after July’s widely anticipated 0.25% increase in the interest rates.

It should be observed that the first readings of the Eurozone and Germany slumped to the lowest levels since 2020 and reduced the room for the European Central Bank (ECB) to sound hawkish amid looming fears of witnessing a hard landing. As a result, the Euro bulls struggle to cheer the US Dollar’s retreat.

Against this backdrop, the S&P500 Futures remain sidelined near 4,580, struggling to extend the previous day’s recovery, whereas the US 10-year and two-year Treasury bond yields retreat from the highest levels in two weeks to 3.86% and 4.84% in that order.

Moving on, the ECB Bank Lending Survey and Germany’s IFO poll details will precede the US CB Consumer Confidence for July, expected 112.1 versus 109.70 prior, to direct intraday moves. However, major attention will be given to the monetary policy meeting of the Fed and the ECB, as well as clues for the same.

Providing a sustained break of an ascending resistance line stretched from February, around 1.1150 by the press time, EUR/USD remains on the way to testing the previous monthly low of around 1.1015.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1074 at the time of writing. Pair opened at 1.1065 and is trading with a change of 0.08% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.1037, 50 SMA 1.0898, 100 SMA @ 1.0886 and 200 SMA @ 1.0695.

The previous day high was 1.1147 while the previous day low was 1.106. The daily 38.2% Fib levels comes at 1.1093, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1114, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1034, 1.1004, 1.0948
• Pivot resistance is noted at 1.1121, 1.1178, 1.1208

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