EURUSD: Analyzing Powell's Stance and Strong US Growth

In today's trading session, we are eyeing a selling opportunity on EURUSD around the 1.08600 zone, as the pair continues to trend downward and is presently in a correction phase approaching the 1.08600 support and resistance area.

Adding a fundamental layer to our analysis, Chair Powell's recent stance regarding a potential rate cut in March is a significant signal for the market. His explicit statement that a rate cut is not the Federal Reserve's base case, coupled with a robust payrolls report, strongly reinforces this message. It's noteworthy that Chair Powell, having access to a wealth of information beyond what's available to the markets, deliberately chose to assert the Fed's position against rate cuts, rather than leaving the possibility open.

Moreover, in an environment where US economic growth leads the way, it typically bodes well for the Dollar. This assertion aligns with the recent strong performance of the US economy, as evidenced by robust employment data and other economic indicators, further supporting the potential for a strengthening US Dollar against the Euro.

Trade safe, Joe.