EUR/USD to face extra downside pressure

EUR/USD is suffering the pick-up in the risk aversion sentiment among market participants, coming under exacerbated downside pressure and recording fresh multi-week lows in the proximity of 1.1730 at the same time. The downside could extend further while investors are now focused on the testimony by Fed’s J.Powell, FXStreet’s Pablo Piovano briefs.

Key quotes

“On Tuesday, investors are expected to closely follow the first testimony by Chief Jerome Powell on the Fed’s response to the pandemic ahead of two other testimonies on Wednesday and Thursday. The dollar will, therefore, be under the microscope practically during the whole week.”

“It seems that further downside in EUR/USD looks like a probable scenario in the short-term horizon. That said, the next relevant contention area emerges in the 1.1700 neighbourhood, considered as the lower bound of the August-September range. On the other hand, bullish attempts now low somewhat out of favour, although they should meet strong resistance in the 1.19 zone.”