“We’re still a long way off,” said Federal Reserve Chair Jerome Powell, causing EUR/USD to rise, or, to put it another way, the dollar to fall. Powell-driven rebound is expected to continue, according to FXStreet Analyst Yohay Elam.
See: DBS Bank: EUR/USD to Find Solid Support around 1.1705/1.1695
“After Fed Chair Powell pushed back against any impending tightening, the EUR/USD has recovered. A weaker currency is the result of more dollars being printed. Powell also disregarded unexpectedly high inflation statistics as a blip on the radar. He expects inflation to continue high for a few more months before declining.”
“Will the dollar greenback’s slog continue? Powell is scheduled to testify before a Senate committee later today, and he might maintain the pressure. Weekly unemployment claims and two Fed manufacturing surveys – one for the New York region and the other for Philadelphia – will also be watched by investors.”
“The focus on Capitol Hill is still important, as discussions regarding a $3.5 trillion infrastructure measure that has been agreed upon by a broad group of Democrats are high on the agenda. If progress is made, the dollar may rise on expectations of increased inflation and, as a result, rate hikes sooner rather than later. The greenback, on the other hand, might fall if lawmakers disagree. Less government expenditure equals lower bond issuance, which might weigh on the dollar if Treasury yields fall.”
“The 100 SMA, which crosses the price at 1.1860, provides some resistance. It’s followed by a tough cap at 1.1880, as well as 1.19 and 1.1950.” “Support is around 1.1825, which has cushioned EUR/USD in recent days, and then 1.1775, the multi-month low.” The next level to keep an eye on is 1.1740.”/n
