Eurusd Declines Amid Focus On Fedspeak

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Eurusd Declines Amid Focus On Fedspeak

EUR/USD Declines To 1.0850, Focus On Fedspeak

The EUR/USD pair, which is also dubbed as the most liquid FX pair, lost its traction ahead of the highly anticipated Fedspeak. As a result, the Euro/Dollar pair declined to the 1.0850 level while it was trading above 1.0930 a few hours ago.

In the last few days, the risk sentiment has improved, but the USD still continues to show its resilience against other FX currencies. In addition, the bond yields are also on the rise, which is weighing heavily on the Euro/Dollar pair.

EUR/USD Rejected At 100 SMA

The EUR/USD technical chart reveals that bulls are running out of steam.! As the EURO/DOLLAR touched the 100 SMA, a surge of selling pressure emerged, which caused the pair to lose its direction near 1.0930. Furthermore, the slope of the 20 SMA also started to show downward pressure, along with the momentum indicators showing a bearish print.

And if we look at the 4-hr chart of the EUR/USD, it also hints at bearish momentum, which is bad news for the EURO but good for the USD. Similarly, the EURO/USD is also showing no significant momentum in either direction if we look at the 20 SMA.

Based on the available information, the support levels for the EUR/USD pair are 1.0835, followed by 1.0790 and then 1.0740. On the upside, the nearest & important resistance levels are 1.0930 and then 1.0960. If the EUR/USD manages to climb above 1.0960, the next resistance zone will be near 1.1005.

For now, the focus will shift away from the technical moves as all eyes will be on the Fedspeak event. The markets are already aware that the high interest rates aren't going anywhere, which is bullish for the US Dollar. But if the recent Fedspeak event gives hints at something other than what's expected, the EUR/USD may continue its upward advance once again.

The probability of high interest rates for long-term is very real which means the USD will gain strength in the short to medium term.

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