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EUR/USD remains capped below 1.1900 ahead of US data, Fedspeaks

  • Will DXY sustain the recovery?
  • Daily pivot at 1.1920 – key near-term resistance.
  • Fed Chair nominee Powell’s testimony eyed.

Having faced rejection at the daily pivot of 1.1920, the EUR/USD pair drifted back below 1.19 handle, now flirting with daily lows of 1.1883.  

EUR/USD awaits US data, Fedspeaks for fresh impetus

Yesterday’s broad-based US dollar advance regained strength, knocking-off the EUR/USD pair back towards the midpoint of 1.19 handle, as investors gear up for the US economic releases and a slew of speeches by the Fed officials, with the Fed Chair-Designate Powell’s speech likely to hog the limelight in the day ahead. The USD index regains 93 handle, up +0.16% on the day.

Moreover, a better sentiment seen around the European stock markets also add to the weight on the funding currency Euro, leaving the rates below 1.1900 levels. The spot remains on track to extend its retreat from two-month tops of 1.1961, as markets take profits off the table ahead of a big week ahead, with the Eurozone flash CPI, US GDP figures and US Senate vote on tax reform due on the cards.

In the meantime, the US goods trade balance, S&P/CS Composite-20 HPI y/y and CB consumer confidence data alongside the Fedspeaks will offer near-term trading opportunities.

EUR/USD Technical Levels

According to Karen Jones, Analyst at Commerzbank, “EUR/USD has eroded key resistance offered by 1.1880/1.1910 (61.8% retracement, early August and October highs). This is impressive, but we would like to see a close above the 78.6% retracement at 1.1976 to confirm further upside intent. This is regarded as the last defense for the 1.2092 September high.  We will not chase this higher as we have 13 counts on the 60 and 240-minute charts and would allow for some near-term consolidation and possible retracement towards its near-term uptrend. It stays immediately bid above its uptrend at 1.1792.” 

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