Despite the Broad-Based US Dollar Bullish Trend, the EUR/USD Currency Pair Unchanged Around 1.1285 Marks Ahead Of Eurozone Consumer Price Index. During Wednesday's Asian trading hours, the EUR/USD currency pair succeeded to maintain its previous session gains around 1.1285 despite the broad-based U.S. dollar strength triggered by the upbeat U.S. retail sales. However, the uptrend in the currency pair may remain difficult, as the uptick in the number of new coronavirus cases in Beijing and the U.S. has fueled the fears of the second wave of the virus outbreak. At the press time, the EUR/USD currency pair is currently trading at 1.1286 and consolidating in the range between 1.1254 and 1.1289.
At the USD front, the broad-based U.S. dollar took bids on the day mainly after the U.S. retail sales rose more than expected 7.9% in May to 17.7%. As well as, the U.S. dollar was further supported by the fresh risk-off market sentiment triggered by the intensified odds of pandemic wave 2.0. However, the strength of the U.S. dollar failed to send the EUR/USD currency pair lower. The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.07% to 97.002 by 11:57 PM ET (4:57 AM GMT).
China took additional actions to halt air travel and planned to impose further lockdown restrictions to limit the spread of infection as the new coronavirus cases rose above 557 so far. On the other hand, Japan, the U.S., and Germany also reported fresh cases that eventually fueled the concerns of the second wave of coronavirus and exerted some downside pressure on the risk sentiment.
Looking forward, the pair traders may take cues from the Eurozone Consumer Price Index (May) and Construction Output (May) scheduled for release during the European session. On the other hand, the focus would be on the U.S. Housing Starts, Building Permits, and the Federal Reserve Chairman Powell's semi-annual testimony.
Daily Support and Resistance
S1 1.1084
S2 1.1189
S3 1.1258
Pivot Point 1.1295
R1 1.1363
R2 1.1401
R3 1.1506
Technically, the EUR/USD pair is trading sharply bearish, falling from 1.12600 level to 1.1230, which marks a strong triple bottom area. On Wednesday, the EUR/USD seems to wait for the FED Chair Testimony, but we may see a breakout on the release. On the lower side, the breakout of the 1.1231 level can extend selling until 1.1156 level. Conversely, the failer to break the 1.1231 level can drive buying until the 1.1280 level. Good luck!