- Slight recovery of the dollar sends EUR / USD below 1.2200.
- Intraday bias is bearish as the pair struggles to find direction.
EUR / USD is retreating on Tuesday, having advanced for the second day in a row on Monday. The euro failed to sustain above 1.2200 and bottomed out on Tuesday at 1.2163. It is moving without clear direction, with the market increasingly focusing on Thursday’s meeting of the European Central Bank.
A The dollar’s recovery across the market left EUR / USD weak on Tuesday. It is trading around 1.2170 / 75, with no clear direction, below the 20 hour average that is passing through 1.2185. If the euro rises above it could gain momentum.
Foreign trade data will be known in the US, which should not have an impact on the market. The focus would be expected to remain on Wall Street and the bond market.
In the Eurozone, it was known that industrial production in Germany fell 1% in April, below expectations. In another report, the German ZEW confidence survey presented mixed numbers, with the main indicator falling from 79.8 to 84.4 in June; there was a strong rebound in the current situation index.
The key event in the Eurozone is Thursday’s meeting of the European Central Bank. TDS analysts expect the central bank to maintain the pandemic emergency purchase program (PEPP) this week and reduce it in the third quarter, more due to a question of seasonality and liquidity, than due to financial conditions or the macro outlook. “The net result could be a fall in the rates of the Eurozone, together with another false dawn for the EURO,” they added, recalling that for weeks they have seen the rises of the EUR / USD towards 1.22 as a possibility of sales.
Technical levels
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