This Wednesday, the EURUSD pair remains at familiar levels, holding around 1.0910/20. Ahead of Federal Reserve (Fed) Chairman Jerome Powell’s speech before Congress. The market mood is still gloomy, as evidenced by global markets trading in the red.
Investors expected Chairman Powell to say more hawkish things during his semiannual hearing. Hoping for some clarity on the future path of interest rates. With inflation already above the central bank’s 2% objective. And the labor market being tight, further raises appear logical. However, at the same time Monetary tightening could trigger a financial system catastrophe and a recession. Powell is on shaky ground and must tread carefully to avoid inciting fear.
Powell’s prepared remarks demonstrated that officials are paying attention to recent indications indicating. That economic activity is expanding slowly after slowing sharply last year. At the same time, the paper indicates that they continue to believe the labor market is “very tight.” Furthermore, virtually all FOMC members believe it is prudent to hike interest rates slightly further before the end of the year. Finally, officials stated that they would continue to make decisions meeting by meeting based on new data, implications for the outlook, and risk balancing.
Following the release of the paper, the EURUSD pair eases, as Wall Street loses more ground. prior of the beginning, implying that the risk-off environment will continue throughout the forthcoming session.
The macroeconomic calendar continues to be data-scarce. The Eurozone did not disclose any relevant data, however the United States (US) released MBA Mortgage Applications for the week ending June 16, which increased by 2.36%. In addition to Powell’s testimony, a couple of Fed officials will speak to the media in the American afternoon.
EURUSD Technical Outlook
The EURUSD daily chart reveals that the pair is dead for the fourth day in a row. Nonetheless, it continues to develop well above all of its moving averages, limiting the odds of a sharper collapse. Simultaneously, technical indicators have relaxed within positive levels but fall short of indicating an impending decline.
In the short term, and in accordance with the 4-hour the pair is technically neutral on the chart. The upside is limited by a flat 20-period Simple Moving Average (SMA), while the longer moving averages are considerably below the current level. Within neutral levels, the Momentum indicator lacks directional strength, while the Relative Strength Index (RSI) sign heads marginally lower at around 55. A break below 1.0890, the immediate support level, increases the likelihood of a bearish corrective slide.
The pair is technically neutral on the chart. The upside is limited by a flat 20-period Simple Moving Average (SMA), while the longer moving averages are considerably below the current level. Within neutral levels, the Momentum indicator lacks directional strength, while the Relative Strength Index (RSI) sign heads marginally lower at around 55. A break below 1.0890, the immediate support level, increases the likelihood of a bearish corrective slide.
