EUR/USD[1] Price, Chart, and Analysis
- EUR[2]/USD[3] back above 105.00 on USD weakness.
- Fed speakers, including Jerome Powell, are out in force this week.
The US dollar[4] is on the backfoot in European trade, and back above 105.00 in US holiday-thinned trade. The US Juneteenth, a federal holiday, sees the US bond markets, the New York Stock Exchange, and the Nasdaq[5] all closed in observance. The US dollar basket (DXY) is currently quoted around 0.30 lower at 104.14 and sits in the middle of last Thursday’s (post-FOMC[6]) dominant 2-point candle.
US Dollar Basket (DXY) – June 20, 2022
For all market-moving economic releases and events, see the DailyFX Calendar[7]
Over the next few days, there will be important commentary from a range of Federal Reserve members including two days of testimony from Fed chair Jerome Powell on Wednesday and Thursday. The markets will be looking for more clues from the Fed chair after the central bank hiked rates by 0.75% last week and indicated that another 75 basis point hike is likely on the way at the July FOMC meeting. While it can be argued that the Fed has been behind the curve compared to money market rate hike pricing, commentary from Powell needs to be very closely followed.
The daily EUR/USD chart continues to paint a mixed picture with a series of longer-term lower highs now meeting a very short-term series of higher lows. The pair remains below all three simple-moving averages, a negative set-up, while the CCI indicator has just moved out of oversold territory. Looking at short-term levels, last Thursday’s candle between 103.80 and 106.00 should provide initial support and resistance targets.
