EUR/USD finds support above 1.0530, holds range

• Equity markets bounce back after crash, contributing to some calm.
• EUR/USD remains in consolidation mode around 1.0550.
• The dollar remains firm in the market, without significant correction.

The EUR/USD is trading flat from Monday’s close around 1.0555/60. It previously found support at the 1.0530 area from where it rebounded. In a broader perspective, the pair continues to move sideways within a dominant downtrend.

For two weeks now, the EUR/USD has been moving without a clear direction. To the upside, it cannot be asserted above 1.0600, which has become the key resistance. If this level is overcome, the next barrier appears on the scene at 1.0650. In the opposite direction, 1.0525 is the first support followed by the critical around 1.0480. A break in the latter would enable more casualties.

Calm, for now, in the markets

The dollar remains firm although without marking maximums for these hours, after the calm in the stock markets and in public securities. Treasury bond yields they remain far from the peaks in recent years. The 10-year rate is at 3.00%, far from 3.20%, and the 30-year rate at 3.14%, down from 3.31%. On Wall Street, futures point to an open with rises around 0.65%.

For the next few hours, the focus will continue on what happens with the bags. From the economic calendar, the presentation of several members of the Federal Reserve stands out: John Williams, Thomas Barkin, Christopher Waller, Neel Kashkari and Loretta Mester. In addition, three-year US debt will be placed. The US Senate would confirm Lisa Cook on the Fed’s Board of Governors. On Wednesday it will be the turn of retail inflation for April.

In the Eurozone, the German ZEW survey was published with mixed data, with the expectations index at -34 against -43 expected.

Technical levels