EUR/USD Forecast: Consolidative phase continues with bulls maintaining the pressure

EUR/USD
Current
price:
1.0824

• 
  The
  US
  Dollar
  can
  not
  lift
  its
  head
  after
  Federal
  Reserve’s
  Powell
  resumed
  the
  hawkish
  tone.
• 
  Market
  participants
  await
  a
  United
  States
  inflation
  update
  on
  Thursday.
• 
  EUR/USD
  trades
  within
  familiar
  levels
  but
  bulls
  remain
  in
  charge.

The
EUR/USD
pair
trades
uneventfully
at
around
1.0820
on
Wednesday,
still
confined
to
a
tight
intraday
range,
with
the
US
Dollar
maintaining
the
soft
tone
across
the
FX
board.
Financial
markets
were
unable
to
take
directional
clues
from
Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
testimony
before
Congress.
Powell´s
words
on
monetary
policy
resumed
the
hawkish
tone
that
he
partially
abandoned
in
Sintra,
triggering
a
short-lived
USD
run.

Still,
market
participants
remain
unconvinced,
awaiting
a
clue
that
does
not
seem
to
come.
Everything
about
the

United
States
(US)
economy
seems
to
be
moving
in
the
right
direction—growth,
employment,
and
inflation—but
at
a
pace
that
does
not
require
the
Fed’s
intervention.

Additional
hints
will
come
on
Thursday
when
the
US
will
publish
Consumer
Price
Index
(CPI)
figures.
Annual
inflation
is
foreseen
up
3.1%
in
June
while
the
monthly
increase
is
expected
to
be
0.1%.
Finally,
the
core
annual
CPI
is
foreseen
unchanged
at
3.4%.

Meanwhile,
today’s
focus
will
be
on
speeches
from
Fed
policymakers,
including
Chair
Powell.
Powell
will
repeat
its
testimony
on
monetary
policy
before
a
different
commission
in
the
American
afternoon.

EUR/USD
short-term
technical
outlook

From
a
technical
point
of
view,

the
EUR/USD
pair
is
bullish,
according
to
the
daily
chart.
The
pair
keeps
comfortably
trading
above
all
its
moving
averages,
with
the
100
and
200
Simple
Moving
Averages
(SMAs)
converging
around
1.0790
and
providing
support.
At
the
same
time,
technical

indicators
aim
to
resume
their
advances
whitin
positive
levels,
skewing
the
risk
to
the
upside,
although
without
confirming
an
upcoming
rally.

EUR/USD
is
neutral-to-bullish
in
the
near
term.
The
4-hour
chart
shows
a
directionless
20
SMA
caps
advances,
although
the
longer
moving
averages
tick
marginally
higher,
well
below
the
current
level.
Finally,
the
Momentum
indicator
lacks
directional
strength
around
its
100
line,
but
the
Relative
Strength
Index
(RSI)
indicator
picked
up
within
positive
levels,
in
line
with
increased
buying
interest.
Bulls
will
be
more
comfortable
once
the
1.0850
area
is
cleared,
while
bears
can
take
their
chances
on
a
break
below
1.0790.

Support
levels:
1.0790
1.0740
1.0700
 

Resistance
levels:
1.0850
1.0880
1.0930