EUR/USD remains steady under1.1750, seven-day streak at risk
- EUR/USD is losing ground for the first time in more than a week.
- US dollar rises marginally across the board, remains under pressure.
The EUR/USD pair is falling modestly on Tuesday. After dropping to 1.1697, it bounced to the upside, trimming losses. Over the last hours, it has been moving between 1.1740 and 1.1705.
The euro is about to post the first daily loss against the US dollar in more than a week. The greenback rose modestly in the market. The DXY is up modestly, hovering around 93.60, after reaching earlier 94.00.
The recovery of the US dollar looks vulnerable and like a normal correction after losing ground significantly over a few days. On Wednesday, the Federal Reserve will announce its decision on monetary policy. No change is expected but the statement and the forward guidance could influence the dollar.
Regarding the euro, it lost strength after an acceleration of the bearish correction in EUR/GBP that kept EUR/USD limited below 1.1750. The trend in EUR/USD is still positive and even a sharper slide would be seen as normal.
On Monday, EUR/USD posted the highest daily close since September 2018. So far on Tuesday, for the first time in weeks, the pair did not reach new cycle highs. “EURUSD continues to hold just below 1.18. That marks key multi-year trend resistance. While positioning and valuations are not a catalyst for reversal, they may begin to bite at that technical threshold. That said, EURUSD's rally since the EU Recovery Fund is reminiscent of the melt-up in 2017 (post-Macron election)”, explained analysts at TD Securities.
Technical levels