- Financial markets moving sideways, with no clear direction.
- The Fed’s Powell will speak later on Tuesday.
- EUR/USD is holding on to recent gains and remains above 1.0700.
The EUR/USD is moving sideways on Tuesday, validating the great advance of the two previous days, in which it rose from levels below 1.0500, reaching 1.0760 on Monday, the maximum since June. For hours the pair has been moving around 1.0740, without a clear direction for the day, but with an upward bias in a larger perspective.
The dollar it remains weak, although it manages not to set new lows so far on Tuesday. The combination of lower Treasury yields and a rise in equity markets is keeping the greenback under pressure. The DXY is around 103.20, after the lowest close in months on Monday.
Comments from officials of the Federal Reserve on Monday (Daly and Bostic) on the need for interest rates above 5% and that they remain for a period of time above gave some support to the dollar. On Tuesday, the expectation is set on the presentation of Jerome Powell, the president of the Fed, at a conference in Sweden. Later in the week, on Thursday, the key data will be released, which is US December inflation.
Technically EUR/USD moves with a bullish outlook and solid tone, which will prevail as long as it remains above 1.0700. Below is the 20-day moving average at 1.0630. On the upside, the next major resistance is seen around 1.0790 where the May 2022 highs are.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
