EUR/USD climbs above 1.0520 as DXY weakens, focus shifts to PMI
FXStreet · 20 Jun 2022 446 Views
  • EUR/USD has jumped above 1.0520 as weakness in the DXY has supported the risk-sensitive currencies.
  • A bullish open drive session in the asset will keep the shared currency bulls in the dominant position.
  • The US MI numbers are expected to display a vulnerable show.

The EUR/USD pair is advancing swiftly higher in the Asian session and has surpassed 1.0520 as the US dollar index (DXY) has lost its grip. The pair has displayed a bullish open drive session as the asset is scaling higher right from the first auction order. On a broader note, the major witnessed a corrective move after failing to cross the psychological resistance of 1.0600. Now, a rebound has been witnessed in the counter, which looks firmer and is expected to add significant gains.

In today’s session, the DXY has witnessed a steep fall right from the open and a downside move has been recorded after oscillation in a 104.62-104.72 range. The DXY is underperforming despite the hawkish comments from Federal Reserve (Fed) policymakers.

Cleveland Fed Bank President Loretta Mester in her interview with CBS News on Sunday dictated that the price pressures won’t get trimmed overnight. It will take a period of two years but will get back to its neutral state. The Unemployment Rate may increase to 4.00-4.2% and the Fed could dictate one more 75 basis points (bps) rate hike in July.

This week, the focus will remain on the Purchase Managers Index (PMI numbers from the US and eurozone. The US Services PMI is seen extremely lower at 49.1 against the prior print of 53.2. While the eurozone Services PMI will shift lower to 55.5 vs. 56.1 reported earlier. The US Manufacturing PMI is expected to slip to 54.7 from the former figure of 55.7. While the eurozone Manufacturing PMI may land at 53.9, lower than the prior figure of 54.6.

EUR/USD

Overview
Today last price 1.052
Today Daily Change 0.0018
Today Daily Change % 0.17
Today daily open 1.0502
Trends
Daily SMA20 1.0638
Daily SMA50 1.0635
Daily SMA100 1.0888
Daily SMA200 1.117
Levels
Previous Daily High 1.0561
Previous Daily Low 1.0445
Previous Weekly High 1.0601
Previous Weekly Low 1.0359
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0489
Daily Fibonacci 61.8% 1.0517
Daily Pivot Point S1 1.0444
Daily Pivot Point S2 1.0386
Daily Pivot Point S3 1.0327
Daily Pivot Point R1 1.056
Daily Pivot Point R2 1.0619
Daily Pivot Point R3 1.0677

Affected Trading Instrument

*Risk Disclaimer: The content above represents only the views of the author. It does not represent any views or positions of DCFX and does not mean that DCFX agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the DCFX, DCFX does not assume any form of liability unless otherwise expressly promised in writing.

Recommend