EUR/USD extremely steady around 1.1165, is it good for the Euro?

  • Markets remain quiet, with majors in extra small ranges. 
  • EUR/USD moving around 1.1165, in a range of less than 10 pips over the last three hours. 
  • US data came in below expectations, Powell’s speech next. 

The EUR/USD continues to consolidate around 1.1165, moving in a very small range, showing no signs of volatility. The currency market overall is quiet on Monday. US data came in below expectations but it was ignored by market participants. 

The Chicago Fed national activity index declined more than expected in April to -0.45%, below the -0.3 expected and below the previous +0.05. The US Dollar dropped modestly across the board measured by the DXY that pulled back under 98.00. 

Later today FOMC Chairman Powell will deliver a speech. Markets could remain on sleep mode because he is not expected to deliver new comments on the policy outlook, but it represents an event worth watching. On Tuesday, data to be released includes EZ Consumer Confidence. 

EUR/USD steady, still bearish  

The pair continues to move within a descendant short-term channel. The current stability below 1.1200 and also under 1.1170 favors more declines ahead with the euro being unable to show a modest recovery.  A positive signal for the euro would be a recovery, at least, above 1.1185/90 that should remove the bearish pressure and would put the pair back into the previous (higher) trading range. 

The bias point to the downside and a breakout below 1.1150 would hint to further losses, targeting 1.1130. Below that level attention will turn to the 2019 low seen back late in April at 1.1110. 

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