EUR/USD Pulls Back From Six-Week Highs As Powell Testifies
The EUR/USD pair retreated on Thursday after hitting six-week highs during the European session amid a broad-based dollar pullback. However, the US currency bounced at the beginning of the New York session after Federal Reserve Chair Jerome Powell's second-day testimony before the US Congress.
At the time of writing, the EUR/USD pair is trading at the 1.0965 zone, 0.2% below its opening price, having struck its highest level since May 8 at 1.1013.
During his testimony before the Banking, House and Urban Affairs Committee in the US Senate, Powell reiterated that the central bank still has a long way to go and reassured that monetary policy is not becoming less effective in combating inflation. He also backed what the dot plot showed last week, the Federal Open Market Committee (FOMC) broadly feels "it will be appropriate to raise rates again this year and perhaps two more times."
His hawkish remarks boosted US yields and helped the greenback to make a U-turn and reverse daily losses.
From a technical perspective, the EUR/USD pair holds a short-term positive bias according to indicators on the daily chart, while the 20- and 100-day simple moving averages (SMAs) are close to completing a bullish cross.
On the upside, the 1.1000-10 zone stands as the immediate resistance level, followed by 1.1070 and the 1.1100 level. On the downside, the 1.0900 area stands as immediate support, followed by the critical short-term level given by the convergence of the 20- and 100-day SMA at the 1.0810 zone.
At the time of writing, the EUR/USD pair is trading at the 1.0965 zone, 0.2% below its opening price, having struck its highest level since May 8 at 1.1013.
During his testimony before the Banking, House and Urban Affairs Committee in the US Senate, Powell reiterated that the central bank still has a long way to go and reassured that monetary policy is not becoming less effective in combating inflation. He also backed what the dot plot showed last week, the Federal Open Market Committee (FOMC) broadly feels "it will be appropriate to raise rates again this year and perhaps two more times."
His hawkish remarks boosted US yields and helped the greenback to make a U-turn and reverse daily losses.
From a technical perspective, the EUR/USD pair holds a short-term positive bias according to indicators on the daily chart, while the 20- and 100-day simple moving averages (SMAs) are close to completing a bullish cross.
On the upside, the 1.1000-10 zone stands as the immediate resistance level, followed by 1.1070 and the 1.1100 level. On the downside, the 1.0900 area stands as immediate support, followed by the critical short-term level given by the convergence of the 20- and 100-day SMA at the 1.0810 zone.