EURUSD remains above 1.1000, waiting for a catalyst to restart rise

The Fed indicated that major central banks will lower the frequency of their activities with the Fed.

The EURUSD pair is trading a few points over the 1.1000 mark after hitting a new two-week high of 1.1066 earlier in the day. The US Dollar shifted direction early in Asia, gaining strength throughout the European morning.

A combined declaration from major central banks sparked broad US Dollar demand. The European Central Bank (ECB), the Bank of Japan (BoJ), the Bank of England (BoE), and the Swiss National Bank (SNB) stated that their dollar transactions with the Fed will be reduced from daily to once per week.

The focus of speculation was on American statistics and earnings releases.

The European macroeconomic calendar has nothing interesting to offer, although the US session will have some interesting numbers. The United States will release the March CB Consumer Confidence Index in April. April New Home Sales and the Richmond Fed Manufacturing Index. Furthermore, speculative interest will scrutinize earnings reports to estimate the likelihood of an economic downturn.

EURUSD Technical Outlook

The EURUSD pair will open on Wall Street at 1.1020, with its bullish potential intact. The daily chart indicates that EURUSD is continuing to rise over positive moving averages, with the 20 Simple Moving Average (SMA) rising above the lengthier ones and providing dynamic support in the 1.0930 area.

In the meanwhile, technical indications remain optimistic but lack directional strength. To gain momentum, the pair must break beyond the monthly high of 1.1075.

The 4-hour chart reveals that the retracement does not point to another step south in the short future. The weekly peaks of technical indicators close Overbought readings and a lower head, although being far above their midlines.

Moving averages retain their upward slopes below the present level at the same time, with the 20 SMA speeding higher over the lengthier ones.