- EUR / USD remains sideways, without major changes.
- The dollar mostly stable despite rising Treasury yields.
The EUR / USD was unable to return above 1.2100 during the Asian session and fell back to find support again at the 1.2055 area.. It is trading around 1.2070, moving sideways, within the same range on Tuesday.
The market is looking forward to the meeting of the Federal Reserve. At 18:00 GMT the central bank will announce its decisions and half an hour later, Powell will hold a press conference. No changes are expected, the tone and signals from the Fed will be key. It is estimated that the description of the economy would be more optimistic considering the latest data. On Tuesday, both consumer confidence for April and home price indicators for February beat expectations.
Another important event will be the US President’s speech. Joe Biden before Congress, where he would announce a plan of 1.8 trillion dollars for social spending.
Short-term outlook
In the very short term, the bias is bearish for the pair, which could change if there is a rally above 1.2080, where the 20-hour moving average is. In any case, to see a significant strengthening the euro will have to break 1.2100.
In the opposite direction, at 1.2055, there is the immediate strong barrier. The break of it would have as an initial objective 1.2040, and then the next support is seen at 1.2020, which protects the strong band of 1.1990 / 1.2000, which if it were to yield, would imply a deterioration in the general outlook of the EUR / USD.
Technical levels
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