After displaying initially a bearish reaction to the situation. the Fed meeting last night, marking a low at 1.0518, EUR/USD rebounded up to 1.0518. test the threshold of 1.06 at night, but hesitate to do so. stay above this threshold.
Let us recall that Fed President Jerome Powell emphasized that: the strength of the economy, and refrained from ruling out that the central bank goes back to its rates again. However, on the other hand, he spoke about it. of risks “à two sides” for inflation, which means that the probabilities of falling and rising inflation start to decrease. balance.
In other words, the head of the Fed showed himself to be in balance. confident in the fact that he is on the right track to winning the fight against inflation, which has ultimately been his goal. performed like a dovish signal that weighed heavily on the Dollar, allowing the EUR/USD pair to rebound.
Note also that ADP job creation (EPA:ADP) and the ISM US services index were disappointing, which also favored growth. a weakness in the greenback.
As for the important events for EUR/USD this Thursday, the morning will be driven by the European manufacturing PMIs, while in the afternoon in the United States, we will monitor weekly unemployment claims, productivity and productivity. quarterly, and orders at Industry.
>> See the results of all important statistics for EUR/USD in real time as soon as they are published in the Investing.com economic calendar!
We must also not forget that tomorrow, Friday, will also be the occasion of another key event. for the Euro Dollar, with the NFP report on US job creations.
Technical thresholds at monitor on EUR/USD
From a graphical point of view, the trend towards Short term of the Euro Dollar is uncertain, as seen in the daily chart below.
The currency pair faces a first significant resistance to 1.0680-1.07, before the 1.08 zone, where are the 100 and 200 day MAs.
On the downside, yesterday’s low at 1.0518 and the threshold of 1.05 form a first support zone, before this year's low at 1.0448.
Fed raises EUR/USD after initial fall, focus on NFP report