EUR/USD retreats to 1.1340 as US Dollar recovers

• Euro finds resistance below the 1.1370 area.  
• Pair continues to move sideways on a quiet US session.  

The greenback gained some momentum across the board during the US session. The EUR/USD pair retreated from 5-day highs at 1.1366 to 1.1340, erasing most of the day’s gains. As of writing, it trades at 1.1345, holding a negative intraday tone as it stands below the 20-hour moving average. Still, price action remains limit, with majors moving in small ranges.  

The move higher of the US dollar took place as US yields rose further. The 10-year climbed to 2.68%. In Wall Street, equity prices are posting strong gains on the back of positive headlines from the US-China trade conflict. The Dow Jones gains 0.75% and the Nasdaq 0.95%.  

On a wider perspective, EUR/USD continues to consolidate between 1.1370 and 1.1310. Despite US data and comments from Fed’s officials, the range prevailed on Monday. On Tuesday, Jerome Powell will deliver the Semi-Annual Monetary policy report, an event that could trigger market volatility.  

Levels to watch  

To the upside, the critical resistance in EUR/USD is the 1.1365/70 area: a break higher would clear the way to 1.1400. Above the next resistance is seen at 1.1420 and 1.1445/50. On the flip side, the immediate support could be located at 1.1330 followed by the lower limit of the current consolidation range near 1.1315/20. Below, the 1.1300 zone would be exposed and under that level  the next strong support emerges at 1.1270.