Daily digest market movers: Euro appears offered amidst scarce volatility

• The US Dollar rebounds from last week’s lows in the 102.00 zone.
• Markets’ focus will likely be on the US Secretary of State A. Blinken’s visit to China.
• Fed’s J. Powell’s testimonies will be the salient events later in the week.
• The ECB-Fed policy divergence remains the almost exclusive driver of the pair’s price action for the time being

Technical Analysis: Interim contention emerges around 1.0880

The Euro (EUR) has retreated slightly from its new monthly high of 1.0970 reached on June 16. To make further gains, it needs to overcome this level quickly, which would allow it to potentially reach the psychological barrier of 1.1000. If it continues to climb, the next major resistance levels are the 2023 high of 1.1095 (April 26), followed by the round level of 1.1100, and then the weekly top of 1.1184 (March 31, 2022). The latter is supported by the 200-week SMA, which currently stands at 1.1181.

If the bears take control, there is a temporary support at the 55-day SMA at 1.0881. If this level is breached, there are no significant levels of support until the May low of 1.0635 (May 31) prior to the March low of 1.0516 (March 15) and the 2023 low of 1.0481 (January 6).