EUR/USD moves sideways near 20-day lows around 1.1130
After spending the first part of the day consolidating above mid-1.11s, the EUR/USD pair came under pressure at the beginning of the NA session and fell to its lowest level since May 30 at 1.1119. Following that move, the pair failed to make a meaningful recovery and is now trading at 1.1129, losing 20 pips, or 0.18%, on the day.
The greenback strength seems to be the primary reason behind the pair's fall on Tuesday. Fueled by Boston Fed President Rosengren's comments and the solid macro data from the Philadelphia area, the US Dollar Index reached its daily high at 97.52 in the NA session. However, as the yields on the U.S. Treasury bonds fell amid weak risk appetite, the index struggled to extend its upsurge, allowing the EUR/USD pair to take a breather.
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The ECB will be having a non-monetary policy meeting in the early European session on Wednesday, but this event is unlikely to impact the euro's price action. The only noteworthy data of tomorrow will be the Existing Home Sales from the U.S., which is expected to contract 0.5% in May after contracting 2.3% in April.
Technical outlook
FXStreet Analyst Valeria Bednarik notes that the EUR/USD pair accelerated its decline, settling below its 200 SMA in the 4 hours chart for the first time in over two months, further below the 20 and 100 SMAs, and with technical indicators extending their declines towards oversold readings. She further adds that the pair has May 30th low at 1.1009 as the immediate support, followed by 1.1075, the lowest in the last five weeks, and a break below this last should open doors for a steeper correction, with the market then targeting the 1.1000 figure.
According to the analyst, resistances for the pair could be seen at 1.1220, 1.1260 and 1.1300.