August 2, 2022 15:41:27
The shared currency struggled to gain traction amid a risk-off mood. The US dollar is recovering on Tuesday as the U.S.-China tensions over Taiwan sour the market mood. Currently, the EUR/USD pair is trading at $1.0194, down 0.65% for the day.
U.S. House of Representatives Speaker Nancy Pelosi’s planned visit to Taipei, despite warnings from Beijing fuels tensions in the market. Investors opted out of placing bets on high-beta assets. The sentiment weighs upon the prospect of the Euro.
The US dollar is recovering toward 106.00 amid market nervousness.
In addition, the concern over the global economic outlook also added attractiveness to safe-haven assets. As to the U.S. Labor Department Job openings dropped by 5.4% in June, indicating a contracting job market amid softening demand.
EUR/USD remains pressured near 1.0300
On Tuesday, the EUR/USD pair advanced just a tad below the psychological 1.0300 mark. However, the bulls were not able to sustain the gains and ignite a corrective downside soon afterward.
The price struggles near the 21-day EMA at 1.0232, as it already trades below another 50-day critical moving average. A lack of buying momentum pulls down the price into a lower trajectory.
A daily close below the 1.0200 level would amplify the selling in the spot. In that case, the spot could test the 1.0098 horizontal resistance zone.
On the flip side, the emergence of fresh demand could push the price above 1.0300 to test the 50-day EMA at 1.0370.
The RSI (14) turns bearish below 50. Any downtick would strengthen the bearish argument.
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