EUR/USD: Recovery remains capped below 1.0550, focus shifts to Powell
FXStreet · 21 Jun 2022 192 Views
  • EUR/USD is struggling to extend Monday’s rebound in the Asian session.
  • The US dollar corrective mode remains intact amid an improved mood.
  • Lagarde waters down hopes for a double-dose rate hike in July.

EUR/USD is preserving most of Monday’s gains, consolidating below 1.0550 so far this Tuesday. Risk sentiment remains in a firmer spot, weighing negatively on the safe-haven US dollar.

Markets are unwinding their USD long positions, as global stocks stabilize after the previous week’s turmoil and following the hawkish Fed’s monetary policy announcement. Investors gear up for another round of dollar buying, with Fed Chair Jerome Powell’s testimony scheduled before the Congress on its semi-annual Monetary Policy Report on Wednesday and Thursday.

The prepared remarks of Powell’s testimony will be published later this Tuesday. A renewed bid wave may emerge in the dollar should the central bank Chief reinforce his pledge to fight inflation, hinting at a 0.75 bps rate hike in July.

Meanwhile, EUR bulls turn cautious after ECB President Christine Lagarde watered-down expectations of a double-dose rate hike at its next policy meeting in July, citing that they intend to raise key rates by 25 bps next month. Further, looming fragmentation and recession risks in the euro area also keep the euro’s upside attempts in check.

On the data front, the Eurozone Current Account data and US Housing data will be on the cards.

EUR/USD technical levels to consider


Today last price 1.0531
Today Daily Change 0.0020
Today Daily Change % 0.19
Today daily open 1.0514
Daily SMA20 1.0629
Daily SMA50 1.0627
Daily SMA100 1.0881
Daily SMA200 1.1163
Previous Daily High 1.0546
Previous Daily Low 1.0474
Previous Weekly High 1.0601
Previous Weekly Low 1.0359
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0519
Daily Fibonacci 61.8% 1.0502
Daily Pivot Point S1 1.0477
Daily Pivot Point S2 1.044
Daily Pivot Point S3 1.0405
Daily Pivot Point R1 1.0548
Daily Pivot Point R2 1.0583
Daily Pivot Point R3 1.062

Affected Trading Instrument

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