Forex analytics and overview

EUR/USD Back Below 1.0500, Posts Third Consecutive Weekly Decline

2022.06.19 08:12

The EUR/USD pair snapped a three-day gain streak as U.S. Treasury yields lifted the dollar on Friday. At time of writing, the pair traded at 1.0483, 0.66% below its opening price, erasing most of Thursday’s gains that saw the pair hit a weekly high of 1.0601.

EUR/USD was on track to close its third consecutive week with losses.

The yield on the U.S. 10-year note stabilized around 3.25% after hitting a cycle high at 3.497% on Tuesday. Meanwhile, the yield on the 10-year German Bunds also steadied, reaching its highest level since 2014 at 1.926% on Thursday.

After deciding to hike rates by 75 bps on Wednesday, Federal Reserve Chair Jerome Powell stressed that the Fed’s main objective was to return inflation to 2% and that they will take the necessary measures to stabilize prices.

For next week, investors will closely follow his testimony before the Senate, where he could give more information about his vision of the macroeconomic environment and the next monetary policy steps.

The technical outlook for the EUR/USD remained clearly bearish according to the weekly chart, with the pair posting its third weekly loss in a row. On the daily chart, the pair held a neutral bias, slightly skewed to the downside.

EUR/USD Back Below 1.0500, Posts Third Consecutive Weekly DeclineEURUSD Daily Chart

The daily RSI gained a significant downward slope, while the MACD histogram suggested that the selling momentum was picking up steam.

To the downside, first support was seen at the 1.0400 psychological level, loss of which would expose the May 13 cycle low of 1.0349. The next support below these two levels was seen at 1.0300.

The first significant short-term resistance level was located in the 1.0640 area, where the 20-day moving average stands. Beyond that, the EUR/USD could face resistance at the 1.0700 psychological level, which was reinforced by a downtrend line coming from the February highs, and the 1.0770 zone.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,141.29 4.21%
ethereum
Ethereum (ETH) $ 3,475.94 2.18%
tether
Tether (USDT) $ 0.999561 0.08%
xrp
XRP (XRP) $ 2.28 1.86%
bnb
BNB (BNB) $ 706.71 3.34%
solana
Solana (SOL) $ 195.89 2.29%
dogecoin
Dogecoin (DOGE) $ 0.33084 3.20%
usd-coin
USDC (USDC) $ 1.00 0.03%
staked-ether
Lido Staked Ether (STETH) $ 3,475.57 2.35%
cardano
Cardano (ADA) $ 0.912002 1.58%
tron
TRON (TRX) $ 0.256148 1.53%
avalanche-2
Avalanche (AVAX) $ 40.73 4.06%
chainlink
Chainlink (LINK) $ 24.56 2.56%
the-open-network
Toncoin (TON) $ 5.95 5.31%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,132.22 2.22%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 2.76%
sui
Sui (SUI) $ 4.48 0.49%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,890.23 4.23%
hedera-hashgraph
Hedera (HBAR) $ 0.312726 1.95%
stellar
Stellar (XLM) $ 0.384172 3.29%
polkadot
Polkadot (DOT) $ 7.42 2.09%
weth
WETH (WETH) $ 3,474.56 2.15%
hyperliquid
Hyperliquid (HYPE) $ 28.19 0.43%
bitcoin-cash
Bitcoin Cash (BCH) $ 465.43 0.45%
leo-token
LEO Token (LEO) $ 9.51 0.96%
uniswap
Uniswap (UNI) $ 13.90 0.20%
litecoin
Litecoin (LTC) $ 108.73 1.62%
bitget-token
Bitget Token (BGB) $ 5.60 14.17%
pepe
Pepe (PEPE) $ 0.000019 2.03%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,668.37 2.24%
near
NEAR Protocol (NEAR) $ 5.49 0.73%
ethena-usde
Ethena USDe (USDE) $ 0.999549 0.02%
aave
Aave (AAVE) $ 374.48 0.07%
internet-computer
Internet Computer (ICP) $ 11.29 4.83%
usds
USDS (USDS) $ 1.00 0.10%
aptos
Aptos (APT) $ 9.59 1.91%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.516441 2.56%
crypto-com-chain
Cronos (CRO) $ 0.158534 1.58%
vechain
VeChain (VET) $ 0.052204 6.03%
mantle
Mantle (MNT) $ 1.26 5.36%
ethereum-classic
Ethereum Classic (ETC) $ 27.56 1.33%
render-token
Render (RENDER) $ 7.56 1.57%
bittensor
Bittensor (TAO) $ 514.75 4.72%
monero
Monero (XMR) $ 196.35 4.93%
whitebit
WhiteBIT Coin (WBT) $ 24.89 2.10%
mantra-dao
MANTRA (OM) $ 3.77 0.33%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.36 1.10%
dai
Dai (DAI) $ 1.00 0.04%
arbitrum
Arbitrum (ARB) $ 0.800479 0.01%
filecoin
Filecoin (FIL) $ 5.34 3.02%