You are here: Home > articles > Forex > EUR/USD Technical Analysis: Awaiting Jerome Powell’s First Statement
EUR/USD Technical Analysis: Awaiting Jerome Powell’s First Statement
February 27, 2018 8:41 amVideo
Latest News
- Forecast for GBP/USD on May 10, 2024 May 10, 2024
- Forecast for AUD/USD on May 10, 2024 May 10, 2024
- Outlook for GBP/USD on May 10. The British pound failed. Or it simply refused May 10, 2024
- Outlook for EUR/USD on May 10. The euro went up for no reason May 10, 2024
- The US dollar stumbled again May 10, 2024
- The euro got away with it May 10, 2024
- Video market update for May 09, 2024 May 9, 2024
- Analysis of EUR/USD pair on May 9th. Euro woke up after the Bank of England meeting May 9, 2024
- Analysis of GBP/USD pair on May 9th. Andrew Bailey did all he could May 9, 2024
- USD/JPY: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- GBP/USD: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- EUR/USD: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- Technical Analysis – GBPUSD retreats further after BoE’s decision May 9, 2024
- Technical Analysis – UK 100 index swings to all-time high May 9, 2024
- GBP/USD: trading plan for the US session on May 9th (analysis of morning deals). The pound continues to be held within the May 9, 2024
- EUR/USD: trading plan for the US session on May 9th (analysis of morning deals). The euro rebounded from 1.0726 May 9, 2024
- EUR/USD. May 9th. Bulls have exhausted their strength May 9, 2024
- GBP/USD. May 9th. Bulls fear Bailey’s “soft” rhetoric May 9, 2024
- Midweek Technical Look – EURUSD, Gold, US 500 May 9, 2024
- Technical Analysis – EURCHF flirts with uptrend line May 9, 2024
The EUR/USD pair reached a monthly high of 1.2553 on February, 16th. After this, the pair started declining reaching a low of 1.2257. The monthly low for the pair was 1.2204.
The sudden drop in the pair was as a result of the fears that inflation was returning. To traders, inflation is probably one of the most important thing because it plays a major role in interest rates decision.
As a reminder, central bankers follow what is known as the Phillip’s Curve when making these decisions. This is a simple concept that suggests that wages tend to rise as the unemployment rate falls, which pushes the rate of inflation higher. We are in that place in the United States where the unemployment rate is at a 17-year low while the wages are growing marginally. Inflation too is rising.
Today, traders are looking forward to the statement from the new Fed chair, Jerome Powell who will testify before a congressional committee. Tomorrow, he will testify before the senate.
In today’s testimony, he is likely to have an assuring tone for the state of the economy. He is also likely to stick to the talking points of the former Fed chair, Janet Yellen. Possibly, he will neither be dovish or hawkish.
Before the statement, the EUR/USD pair is likely to have some sideways movements as traders anticipate what he will say.
The first likely scenario is that his statement will be supportive for the dollar. If this happens, the EUR/USD pair may to continue moving lower, and may test the monthly low of 1.2204.
The alternative scenario, the pair may potentially reach the resistance level of 1.2171.
The post EUR/USD Technical Analysis: Awaiting Jerome Powell’s First Statement appeared first on Forex.Info.
Related Posts: