EUR/USD holds above 1.12 ahead of Lagarde’s speech

  • EUR/USD has recovered from overnight lows below 1.12. 
  • Asian equities track Wall Street higher and keep the US dollar under pressure. 
  • EU-US trade tensions are likely to escalate, according to an American think tank.
  • ECB’s Lagarde is scheduled to speak at 07:00 GMT. 

EUR/USD’s two-day decline has stalled with the bid tone around the US dollar weakening amidst signs of risk reset in the Asian equities.

The pair is currently trading at 1.1224, representing marginal gains on the day, having printed a low of 1.1190 during Wednesday’s US trading hours.

Major Asian indices like Nikkei and S&P/ASX 200 are reporting gains following the overnight rally on Wall Street. The US stocks rose the Federal Reserve and other regulators announced that they are planning to remove some limit’s on banks’ ability to make investments in hedge funds and similar ventures.

While the uptick in the equities is currently boding well for the single currency, traders should note that coronavirus scare and trade tensions that fueled a decline from 1.1326 to 1.1190 earlier this week are still lingering.

According to Stratfor, an American geopolitical intelligence platform, the US-EU trade war continues to brew and could see Brussels and Washington move forward with more tariffs through the rest of the year. In addition, the number of coronavirus cases in the US and other parts of the world are rising. As such, a sudden reversal lower in equities and stronger rally in the US dollar cannot be ruled out.

The pair is likely to continue taking cues from the broader market sentiment on Friday. The European Central Bank President Lagarde, during her speech at 07:00 GMT, will likely reiterate willingness to provide additional stimulus and stress the need for more effort on the fiscal front. In the US session, the focus would shift to Core Personal Consumption Expenditure – Price Index (MoM) (May). The data will be released at 12:30 GMT.

Technical levels

EUR/USD

OVERVIEW
Today last price 1.1224
Today Daily Change 0.0006
Today Daily Change % 0.05
Today daily open 1.1218
TRENDS
Daily SMA20 1.1254
Daily SMA50 1.103
Daily SMA100 1.0996
Daily SMA200 1.1034
LEVELS
Previous Daily High 1.126
Previous Daily Low 1.1191
Previous Weekly High 1.1353
Previous Weekly Low 1.1168
Previous Monthly High 1.1145
Previous Monthly Low 1.0767
Daily Fibonacci 38.2% 1.1217
Daily Fibonacci 61.8% 1.1233
Daily Pivot Point S1 1.1185
Daily Pivot Point S2 1.1153
Daily Pivot Point S3 1.1116
Daily Pivot Point R1 1.1255
Daily Pivot Point R2 1.1292
Daily Pivot Point R3 1.1324

 



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