EUR/USD has lost its upward momentum and is now trading around 1.0900. This happened on Tuesday during American trading hours. The mixed performance of US stocks shows that the market is cautious, which helps the US Dollar limit its losses and makes it hard for the pair to go up.
Technical Overview
The daily chart shows that the EUR/USD pair has more room to improve, and there are no signs that it will fall again. The pair keeps going up above moving averages that are bullish, and the 20 Simple Moving Average (SMA) is back to rising above the longer ones. The Momentum indicator, on the other hand, has slowed down its fall, but it is still going down and is just above 100. On the other hand, the Relative Strength Index (RSI) has picked up speed and is now around 58, which is in line with another leg north. The 4-hour chart shows that EUR/USD is neutral to bullish in the short term. The pair bounced off of a bullish 100 SMA and is now rising above a 20 SMA with no clear direction, which is around 1.0890. Lastly, technical indicators don’t have a strong sense of direction and are stable around their midlines. Bulls will have a better chance of breaking out to the upside from 1.0930, which is a strong level of static resistance. Support levels: 1.0890 1.0835 1.0790 Resistance levels: 1.0930 1.0985 1.1020
Fundamental Overview
Early on Tuesday, the EUR/USD pair changed direction and is now trading a few pips above the 1.0900 level. After the long weekend, European indexes were optimistic and went up right away, which hurt the demand for the US dollar. Better-than-expected Eurozone numbers helped the Euro even more. In March, Sentix Investor Confidence was -11.1. In April, it was -8.7. Also, Retail Sales were down 0.8% MoM in March, as expected, but they were slightly better than expected when compared to the same month last year.
European stock markets slowed down and lost some of their gains, which helped the US dollar gain some ground before the US market opened. In the meantime, Wall Street is likely to open in the red, and the yields on government bonds are staying close to where they were on Monday.
The US macroeconomic calendar doesn’t have any important macroeconomic data, but there will be a lot of Fed speakers. The US Consumer Price Index (CPI) on Wednesday is still the main focus.
Source: Team CurrencyVeda
