The EUR/USD pair remains range-bound above 1.1150 as it struggles to break through the 1.1200 level on Tuesday. With US stock index futures showing modest gains in the European session, the pair faces resistance in extending its rebound due to the improving risk sentiment.
After a 9.9% increase in Durable Goods Orders in July boosted the USD on Monday, dovish comments from Federal Reserve Bank of San Francisco Mary Daly tempered the currency’s strength. Daly hinted at a possible rate cut in September, signaling a shift in policy.
Investors are now awaiting the release of the CB Consumer Confidence Index data from the US, which could provide further direction for the USD. While a positive consumer sentiment may initially support the currency, large position shifts based solely on this data are unlikely.
Meanwhile, a bullish opening in Wall Street could lend support to the EUR/USD pair in the second half of the day, maintaining its current sideways movement.
EUR/USD Technical Analysis
The technical analysis indicates a bullish trend for the pair, with the RSI indicator holding above 60 on the 4-hour chart. EUR/USD remains above the 20-period SMA and within an ascending regression channel since early August.
Key resistance levels for the pair include 1.1200, 1.1240, and 1.1260, while supports can be found at 1.1160-1.1150, 1.1100, and 1.1060.
Euro FAQs
The Euro, used by 20 European Union countries in the Eurozone, is the second most traded currency globally. The European Central Bank (ECB) in Frankfurt manages monetary policy for the Eurozone, influencing interest rates and inflation. Economic data releases and trade balance are crucial factors affecting the Euro’s value.
Overall, the EUR/USD pair’s movement is influenced by a combination of US economic data, market sentiment, and technical factors. Understanding these dynamics can help investors make informed decisions in the forex market.