EUR/USD: Powell was surprised with a few touches of optimism, the Euro fall

© O Financista. EUR/USD drop following the Fed meeting – The reaction of the Dollar, and the EUR/USD pair in the face of the Fed meeting last night was composed of two phases, with first a rise of the Euro-Dollar in the face of the statement of the Fed to 20h, with a peak of 1,1265.

The press conference of Jerome Powell, who has started at 20: 30 and during which investors were able to overcome some of the signals optimistic, then largely benefited the Dollar, as we can see on the Dollar Index, and has therefore made mechanically the EUR/USD pair down.

The boss of the Fed, in particular, minimized the fact that inflation is lagging behind, attributing this situation to transitory factors. It was also stated that the global risks that weigh on the US economy, as the trade dispute with China, or Brexit, are mitigated, which seems to have been enough to boost the greenback.

Indeed, some don hésitaientt not anticipate that Powell opens more or less the door to a rate cut for this year, which has not been the case…

Today, forex traders will be a bit of a break, facing an economic calendar which will remain charged with first seconds estimates of the PMI manufacturing indexes europe in the month of April, with Germany at 9: 55, and that of the euro area as a whole at 10.

In the United States, the investors shall give special emphasis to the quarterly figures for the productivity to 14: 30, as well as the index of the cost of labor, and the inscriptions weekly unemployment. What are then the commands to the industry that will be expected, at 16h.

From the point of view of technical analysis, although yesterday’s fall would weaken greatly the profile uptrend of the Euro, the bearish reversal has not been confirmed. An upward trend line visible since the low of last Friday will in fact be broken, and the support of 1,1180, before one can consider that sales opportunities sustainable present.

We also note that the EUR/USD is holding above its moving averages 100 and 200 hours (1.1187 and 1.1194), which are also regarded as supports in the short term.

In this case, 1,1150, 1,11, and then directly to 1.10 are the objectives of downside potential the most obvious.

The increase, 1,1225, 1,1250-60 and 1.13 will be the first resistances that are likely to block attempts to rebound.

Find news and analysis France on Facebook-Investingcomfrance, Twitter-InvestingFrance and Telegram-Investingfr.

Like this post? Please share to your friends:
Leave a Reply