EUR/USD still unable to assert itself above 1.0600

• EUR/USD reached a daily high at 1.0606 and then pulled back.
• Pair remains sideways after two days of gains.
• The dollar with mixed results, treasury bond yields at maximum in days.

The EUR/USD marked a daily high at 1.0606, below Monday’s peak, but once failed to assert itself above 1.0600 and pulled back to the 1.0580 area where it is trading. The pair is moving sideways in a small range, in line with some calm in the markets.

The dollar shows mixed results, rising particularly against the yen, with USD/JPY above 136.00. This occurs with the 10-year bond rate yield at 3.23%, at its highest since June 22, and the 30-year bond at 3.34%. In Europe, yields also advanced with the German 10-year bond at 1.65%.

In the forum of European Central Bank (ECB), the President of the ECB stated that they continue to expect positive growth and at the same time said that they have to act decisively and steadily. In an interview, ECB official Martins Kazaks said the base case is a 25-point hike in rates in July and a 50-point hike in September.

In Germany, a drop in the GfK confidence index was reported to -27.4 (better than the -27.7 expected), a new historical low.

The economic calendar shows ahead for Tuesday US data on consumer confidence (Conference Board) and home prices. On Thursday it will be the turn of the core price index for personal consumption expenditure. In Portugal, the annual meeting of the ECB continues to take place, which will have a discussion panel on Wednesday with the participation of Lagarde (ECB), Powell (Fed) and Bailey (Bank of England).

in small range

EUR/USD is trading in a range between 1.0570 and 1.0605. A consolidation above 1.0600 will enable a more significant rally in the pair, with the next strong resistance at 1.0650 (intermediate at 1.0630). In the opposite direction, the first support is at 1.0570, followed by 1.0550 (4-hour average of 20) and then 1.0515.

Technical levels