Euro is trading marginally lower versus the US Dollar.
The Euro (EUR) begins the European day with minor losses versus the US Dollar (USD). Causing EURUSD to oscillate around 1.0550 on Tuesday.
When measured by the USD Index (DXY), the Greenback advances slightly to the 106.30-106.40 area. Ignoring Monday’s bad performance as selling pressure in the US. The fixed-income market is still active.
Investors expect the Federal Reserve (Fed) to maintain its posture of not making any interest rate changes for the rest of the year, as the focus remains on monetary policy. Meanwhile, financial market investors are considering the potential of the European Central Bank (ECB) also suspending its interest-rate policy, despite inflation levels beyond the bank’s objective and rising fears of an economic slump or stagflation in the European area.
The ZEW Institute’s Economic Sentiment in both Germany and the broader eurozone is coming later on the euro calendar.
Retail Sales, Industrial Production, the NAHB Housing Market Index, Business Inventories, and comments by FOMC Governor Michelle Bowman (permanent) take center stage in the United States. Richmond Fed President Thomas Barkin (2024 voter, centrist) and Fed President John Williams (permanent voter, centrist).
Euro Technical Analysis
Euro faces early resistance around 1.0560 EURUSD has some modest negative pressure on Tuesday, returning to the 1.0550 level.
If the present rising trend continues, EURUSD may revisit the October 12 high of 1.0639. As well as the September 20 high of 1.0736 and the significant 200-day Simple Moving Average (SMA) of 1.0821. A break above this level might lead to an attempt to break above the August 30 top of 1.0945. And target the psychological level of 1.1000. Any more gains over the August 10 high of 1.1064 might take the pair towards the July 27 high of 1.1149 and perhaps the 2023 high. On July 18, 1.1275 was observed.
In the case that selling pressure persists, the 2023 low at 1.0448 recorded on October 3 may be revisited. As well as the major support of 1.0400. If this level is violated. A retest of the lows of 1.0290 (November 30, 2022) and 1.0222 (November 21, 2022) is possible.
The possibility for continuous negative pressure continues as long. As EURUSD falls below the 200-day SMA.