- EUR/USD treads waters below the 1.0750 psychological level to extend gains.
- MACD suggests that recent momentum is tepid and favoring a sideways trend.
- The 1.0700 psychological level appears to be initial support followed by the previous week’s low.
- The key barrier level is represented by the nine-day EMA, following the 1.0800 psychological level.
EUR/USD struggles to continue the winning streak with a mild negative bias, trading around the 1.0740 aligned to the 1.0750 psychological level. The pair experienced upward support due to a pullback in the US Dollar (USD).
However, investors generally expect the ECB to adopt a dovish stance and keep interest rates unchanged at the policy meeting on Thursday. Nevertheless, it's important to note that any unexpected or surprising actions or statements from the ECB could still have the potential to unsettle the markets and introduce a level of uncertainty about the EUR/USD pair’s trajectory.
The Moving Average Convergence Divergence (MACD) line remains below the centerline but shows convergence below the signal line. This configuration indicates that the recent market momentum is relatively weak and moves sideways.
The pair may encounter initial support around the 1.0700 psychological level followed by the previous week’s low at 1.0685. A break below the level could push the EUR/USD traders to navigate the area around June’s low at 1.0661, followed by the 1.0650 psychological level.
On the upside, a significant resistance level for the EUR/USD pair is represented by the nine-day Exponential Moving Average (EMA) at 1.0756, following the 1.0800 psychological level.
If the pair manages to break convincingly above this level, it could potentially open the door for further upward movement to explore the region around 21-day EMA at 1.0811 aligned to 23.6% Fibonacci retracement at 1.0826 level.
In the short term, the EUR/USD pair is anticipated to sustain a bearish sentiment as long as the 14-day Relative Strength Index (RSI) remains below the 50 level. This implies that the pair is likely to continue experiencing downward momentum.
EUR/USD: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays weak below 1.0750 ahead of EU inflation data
EUR/USD is trading pressured below 1.0750, halting its three-day winning streak on Tuesday. The extended US Dollar recovery coupled with a softer risk tone undermines the pair, as traders brace for EU inflation data, US jobs report and Fed Chair Powell's speech later in the day.
GBP/USD remains confined in a range near 1.2650 ahead of key US events
GBP/USD stays defensive near 1.2650, extending its struggle early Tuesday. Bets for a BoE rate cut in August act as a headwind amid a modest US Dollar recovery. Traders prefer to wait on the sidelines ahead of the US jobs data and Fed Chair Powell's appearance.
Gold buyers take out $2,330 hurdle ahead of US jobs data, Powell
Gold price is looking to build on the previous upswing in the Asian session on Tuesday. Gold buyers, however, could turn cautious heading into the key US JOLTs Job Openings data and US Federal Reserve Chair Jerome Powell’s speech later in the day.
Polkadot price primed for upside surge following descending trendline breakout
Polkadot broke out from a descending trendline on Monday, marking a 1.5% increase to $6.42 on Tuesday. Potential buyers on the sidelines eyeing opportunities can consider accumulating DOT between $5.41 and $5.72.
Eurozone Inflation Preview: Price pressures expected to ease after May bounce Premium
Eurostat will release crucial European inflation data on Tuesday. Headline inflation is expected to recede in June. Uncertainty prevails regarding future rate cuts by the ECB.