EUR/USD headed for a daily close below 1.12
Although the EUR/USD pair was able to reach its highest level in ten days at 1.1221 at the beginning of the NA session, it struggled to sustain its bullish momentum and dropped below the 1.12 handle. As we approach the end of the trading day, the pair is trading at 1.1180, down 0.13% on the day.
- Forex today: dollar better bid despite lower yields
The US Dollar Index, which fell to 96.80 following the disappointing data from the U.S., started to gather strength amid a lack of fresh catalyst that could keep the selling pressure alive in the NA session and reached its session high at 97.16, pushing the EUR/USD pair back below the 1.12 mark. At the moment, the DXY is consolidating its daily gains at 97.12, up 0.12 on the day. Nevertheless, the pair traded in a tight 50-pip range as the low summer trading volume taking control of the market.
- US Dollar Index recovers and rises back to daily highs, above 97.00
Tomorrow's economic calendar will be featuring speeches by ECB President Draghi (8:00 GMT), FOMC member Harker (15:15 GMT), Fed Chairwoman Yellen (17:00 GMT) and FOMC member Kashkari (21:30 GMT).
Technical outlook
The RSI indicator on the daily and the 4-hour charts is moving sideways near the 50 mark, confirming the short-term neutral outlook of the pair. 1.1200 (psychological level/20-DMA) could be seen as the initial hurdle ahead of 1.1260 (May 22 high) and 1.1300 (Jun. 14 high). On the downside, supports align at 1.1120 (bottom of the 2-month-old horizontal trading channel), 1.1075 (May 18 low) and 1.1000 (psychological level).
- EURUSD: Downward orientation with 1.10 level being objective - Natixis