EUR/USD exchange rate is still strong and close to the 1.0750 level

The EUR/USD pair turned around on Tuesday and returned to the 1.0750 regions as a result of the continued high level of trust surrounding the euro.
With a third straight session of gains, the EUR/USD maintains its current bid bias for the first half of the week. The next objective is above 1.0800. The pair has actually increased by more than 2 cents since last Friday's lows in the vicinity of 1.0500.

While everything is going on, the dollar is under pressure as investors reprice the possibility of a pivot in the Fed's monetary policy occurring sooner than previously anticipated. As a result, the spot continues to gain further upside momentum.

Observations regarding EUR

The EUR/USD pair has started a vigorous comeback and has already retaken the crucial resistance level at 1.0700 and above.

The euro is anticipated to closely track dollar fluctuations, the region's reaction to the energy crisis, and the Fed-ECB gap in the interim.

In the immediate term, the euro faces a significant domestic headwind due to the growing concern about a possible recession in the euro region.

• Following the breach of 1.0700, EUR/USD is attempting to consolidate further.
• Tuesday's dollar trading has been indecisive thus far.
• The speech by Chief Powell later in the day is the main focus of the investors.

 

Levels in the EUR/USD

The pair is currently up 0.07% at 1.0734 and will encounter resistance at the following levels: 1.0760 (monthly high January 9), 1.0773 (monthly high June 27), and ultimately 1.0786. (monthly high May 30, 2022). On the downside, a break of 1.0496 (the monthly low from January 6) would aim for 1.0443 (the weekly low from December 7), before reaching 1.0398. (55-day SMA).