The EUR/USD exchange rate remained in a tight range on Tuesday morning as traders waited for the upcoming statements from several Federal Reserve officials and key macro data from the US. It was trading at 1.1790, down sharply from the year-to-date high of 1.2095.
The EUR/USD pair exchange rate pulled back to the 50-day Exponential Moving Average level as traders waited for key macro data and statements from key officials.
Top central bank officials like Tom Barkin, Susan Collins, Lisa Cook, Raphael Bostic, and Austan Goolsbee will talk and share thoughts on what to expect in the coming meetings.
The statements will come a week after the bank publishes minutes of the last monetary policy meeting. These minutes showed that FOMC members were divided in the last meeting, with some of them supporting interest rate hikes.
The EUR/USD pair will also react to the latest US house price index and consumer confidence report. Economists expect the upcoming report to show that consumer confidence dropped slightly from 87.3 to 84.5.
The EUR/USD pair also wavered after the European Union reacted to the recent decision by the Supreme Court, which ruled that Donald Trump’s tariffs were illegal. In response, the EU announced that it was delaying the ratification of its trade deal with the US.
The two sides reached a deal that allowed the US to charge most European goods a 15% levy, while the bloc agreed to lower levies on American industrial goods and agricultural products.
The daily timeframe chart shows that the EUR/USD exchange rate has pulled back from the year-to-date high of 1.2095 in January to the current 1.1800. This price is along the 50-day Exponential Moving Average (EMA).
The pair has remained slightly above the Supertrend indicator, which is a bullish sign in technical analysis. It remains inside the ascending channel.
Therefore, the bullish outlook will prevail as long as it is above the 50-day moving average and the Supertrend indicator remains in the green. If this happens, it may rebound to the psychological level at 1.2000.
On the other hand, a drop below the 50-day moving average will point to more downside, potentially to the lower side of the ascending channel.
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.
