Powell, the chairman of the US Federal Reserve, reaffirmed the central bank’s dovish stance.
Data from the United States was mixed, limiting the upside potential of high-yielding assets.
On spikes, the EUR/USD is encountering sellers, and lower lows are in reach.
On Thursday, the US dollar gained some ground versus most of its major competitors, ending the day in a positive position. Following the announcement of mixed US macroeconomic numbers, the EUR/USD pair touched 1.1850 before retreating to the 1.1800 price zone and continued its decline through the rest of the US session. Powell, the chairman of the US Federal Reserve, testified before Congress for the second day in a row, adding nothing to the Fed’s conservative stance.
In terms of data, the US released the July NY Empire State Manufacturing Index, which rose to 43 from 17.4 in June, despite the Philadelphia Fed Manufacturing Survey falling from 30.7 to 21.9 in the same month. In addition, Initial Jobless Claims for the week ending July 9 came in at 360K, which was in line with expectations. The government also announced June Industrial Production, which increased by 0.4 percent on a month-over-month basis, and Capacity Utilization, which increased by 75.4 percent, both of which fell short of market forecasts. The EU will release June inflation statistics and the May Trade Balance on Friday. The US will disclose June Retail Sales, which are expected to be down 0.4 percent on a month-over-month basis.
Technical prognosis for EUR/USD in the short term
The EUR/USD pair is currently trading at 1.1800 and is on the verge of sliding further. After an unsuccessful attempt to move beyond the 20 SMA, the pair continues to develop underneath negative moving averages on the 4-hour chart. Both the Momentum and the RSI are in negative territory, thus the Momentum is moving forward while the RSI is staying put. The pair hit a three-month low of 1.1771, which needs to be broken to confirm a new move south.
Levels of support: 1.1770, 1.1720, and 1.1685
Levels of resistance: 1.1840, 1.1885, and 1.1920
(C) 2021 Benzinga.com. Image courtesy of Pixabay. Benzinga does not offer financial advice. All intellectual property rights are reserved./n
