EUR/USD analysis: Reacts to Powell's testimony

Dukascopy Bank Team Dukascopy Bank SA

EUR/USD

The testimony of the US Federal Reserve Chairman Jerome Powell caused major volatility. Namely, the EUR/USD bounced off 1.1380 to the 1.1240 mark during the testimony. Such an unexpected fundamental event ignored all technical levels.

However, by the start of Wednesday's US trading hours, the EUR/USD had returned to normal trading, as it was finding support in the 50-hour simple moving average, and resistance was provided by the 1.1360 level.

In the case that the rate surges above the 1.1360 level, the 1.1380 mark and the weekly R1 simple pivot point at 1.1378 might act as resistance. Above these levels, note the 1.1400 level and the 1.1429 level where the weekly R2 simple pivot point was located at.

Meanwhile, a passing of the support of the 50-hour simple moving average near 1.1315 might result in the EUR/USD reaching the 100-hour SMA at 1.1290, the weekly simple pivot point at 1.1282 and the 200-hour simple moving average near 1.1270.

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Dukascopy Bank Team

Dukascopy Bank SA

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