- The attempt to resume EUR / USD fails near 1.0900 and returns to the lower range of 1.0800.
- The euro is losing ground on the strength of the US dollar after comments from Fed Powell.
- Longer-term EUR / USD remains limited, stuck between 1.0770 and 1.0900.
The attempt to recover the euro from 1.0830 observed during the European session was capped just below 1.0900 before declining during the American trading session. The negative mood of the market and comments from Fed Powell supported the American dollar, bringing the common currency back to its lowest level.
Euro loses ground after Fed Powell speech
EUR / USD appreciated at a week’s high of 1.0896 earlier today, fueled by moderate optimism as European economies prepare to gradually lift COVID-19 restrictions.
The uptrend, however, was capped by the chairman of the Federal Reserve Fed Powell’s speech. Powell dismissed market rumors of the possibility of negative interest and warned of a lasting economic slowdown brought on by the pandemic, increasing dollar offers.
EUR / USD stays on the side, without clear direction
For a longer-term perspective, the pair is trading in a horizontal range, supported above 1.0770 (May 7 low) and below here, 1.0725 (April 24 low) and 1, 0635 (March 20 low, 23 below). Upward, immediate resistance is at 1.0895 (intraday high) and above here, 1.0925 (May 5 high) and 1.1020 (May 1 high).