EUR/USD: Strong rebound in the face of the dovish stance of Powell, before a day dense

© O Financista. The Euro Dollar jumped following the intervention dovish Powell – The intervention deemed to be dovish of Jerome Powell, the head of the Fed, yesterday evening has resulted in a sharp fall in the Dollar and a sharp rebound in EUR/USD, a positive trend seems to be continuing this morning, while the Euro-Dollar is closer to the psychological threshold of 1.14.

Powell to drop the Dollar

Remember that about Powell yesterday hinted that the Fed does not undertake a ” gradual increase in rates “, the boss of the Fed believed that rates are currently ” just under neutrality “, which implies that some further rate increases are likely before the Fed decides to pause.

This is in contrast to his comments of 3 October, where it was estimated that the rates in US are still ” far from neutrality “.

On the forex, these statements have caused a very strong drop in the Dollar, that it was able to observe on the Dollar Index, which marked a low of 96.55 this morning, while he was flying just below 97.50 before the intervention of Powell.

For its part, the EUR/USD has marked a peak to 1.1397 this morning, up over 100 pips compared to its levels yesterday evening at the end of the european session of forex trading (1.1275).

Technical analysis EUR/USD

From a technical point of view, several positive signals can be identified :

  • A break above the psychological threshold of 1.13
  • A break above the moving average 100 hours currently to 1.1333
  • A break above the resistance 1.1350
  • A break above the moving average 200 hours currently 1.1371

In the short term, the pair EUR/USD is facing the psychological threshold of 1.14, to be considered as an obstacle immediately before a resistance zone chart to 1.1420-25.

Beyond that, we will consider that the buyers dominate new, but in this case of potential objectives up to 1.1450, 1.1475 and 1.15.

The downside, the supports that are closest are 1.1350-60, 1.13, 1.1265, 1.1250, 1.1215 and 1.12.

The day will be charged a macro perspective this Thursday

Finally, it should be noted that the economic calendar will be particularly dense today, with :

  • An intervention from Draghi at 9am
  • The unemployment figures in German at 9: 55
  • The CPI preliminary German to 14h
  • Household spending in the US and in the price index for PCE at 14: 30
  • The promises of housing sales to 16h
  • The Minutes of the Fed meeting for the month of November at 20h

Outside these scheduled events, we will also monitor any new statement on the draft Trump in regards to a potential tax on european imports of motor vehicles in the United States.

Always about the trade war, relations China-USA will also be to monitor, with a meeting scheduled between the president Trump and president Xi Jinping on Saturday during the G20 summit.

The discussions between Rome and Brussels in relation to the budget Italian will also be likely to influence the Euro, and the progress (or setbacks) in relation to the Brexit.

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