MTradingGlobal

EURUSD bulls stay hopeful ahead of Fed Chair Powell’s Testimony

FX:EURUSD   Euro / U.S. Dollar
EURUSD remains well-set on the buyer’s radar, despite snapping a four-day uptrend, as markets await Federal Reserve (Fed) Chairman Jerome Powell’s bi-annual Testimony. That said, the upbeat RSI (14) line and the bullish MACD signals join the quote’s successful trading beyond a convergence of 100-SMA and 200-SMA to keep the buyers hopeful. However, a month-old horizontal resistance zone surrounding 1.0840-50 guards the Euro pair’s immediate upside. Following that, descending trend lines from early March and January, respectively near 1.0875 and 1.0895, quickly followed by the 1.0900 threshold, will precede the previous monthly top of 1.0916 to challenge the pair’s further advances. In a case where the pair remains firmer past 1.0916, the odds of witnessing a run-up toward the 1.1000 psychological magnet can’t be ruled out.

Alternatively, the aforementioned key SMAs will join the 50% Fibonacci ratio of the EURUSD pair’s October-December 2023 upside to highlight 1.0800-1.0790 as the key support to watch during the quote’s fresh fall. Should the bears manage to conquer the stated support, the odds of witnessing a quick fall toward 1.0750 and the 61.8% Fibonacci retracement level of 1.0710 can’t be ruled out. However, an upward-sloping support line from late 2023, close to 1.0680 by the press time, appears a tough nut to crack for the Euro bears afterward.

To sum up, the EURUSD remains in the upward trajectory despite the week-start pullback. Hence, Fed Chair Powell’s attempt to revive the US Dollar's strength, by providing hawkish clues and/or ruling out economic woes, needs to be taken with a pinch of salt.

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