Euro bounces on hawkish ECB and ahead Powell’s testimony
EUR/USD is stretching to recent highs on the prospect of higher rates; all eyes will be on Jerome Powell later today for clues on the Fed’s rate path and if the US dollar reacts to his comments, where will EUR/USD go?
EUR/USD jumped higher to start this week ahead of Federal Reserve Chair Jerome Powell’s testimony to Senate Banking Committee in Washington on Tuesday and Wednesday.
Additional event risk may also lie in the euro wide GDP figures that will be seen on Wednesday.
Overnight comments from Robert Holzmann boosted the euro when he said that he could see a 50 basis point lift to rates at the next four European Central Bank (ECB) meetings. Mt Holzmann is a policy maker for the ECB and Governor of Austria’s central bank, the Oesterreichische Nationalbank (OeNB.
Looking forward, it seems that commentary from central bank officials could be the driver for EUR/USD alongside other currency markets and bond markets in general.
The ECB are due to convene on Thursday 16th March ahead of the Fed that will start their gathering the following week on March 22nd.
EUR/USD technical analysis
EUR/USD has been in a 1.0533 – 1.0722 range for three weeks despite several attempts to overcome the topside of this range. Those peaks have setup a potential resistance in the 1.0700 – 1.0720 area.
The 55-day simple moving averages (SMA) also currently resides at 1.0717 and may lend possible resistance. The 34-day SMA is also just above there at 1.0738.
The price is curtently above the 10-, 100-, 200- and s60 day SMAs and the rally overnight went above the 21-day SMA. If it does move above the 34- and 55-day SMAs, it will be above all short, medium and long-term daily SMAs and might indicate that bullish momentum is evolving.
Resistance could be further up at the breakpoints and prior peaks of 1.0805, 1.0936, 1.0945 and 1.1030.
Overall, EEUR/USD remains in an ascending trend channel and support could be at the lower bound of the channel, currently at 1.0390. Ahead of there, the previous lows of 1.0577, 1.0533, 1.0483 and 1.0443 may lend support.
EUR/USD daily chart
This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
