EUR/USD Forecast: Drifting higher ahead of Powell's power-play

The EUR/USD is extending its very gradual climb, breaking above downtrend resistance.
Powell's testimony may trigger much more significant moves.

Yohay Elam FXStreet

The EUR/USD is extending its gains above 1.1700, trading in limited ranges. The US Dollar is generally on the back foot as no news is good news for financial markets and not-so-great news for the greenback. Nevertheless, the broader trend is USD-positive.

Worsening trade relations favor the American currency as it is currently outperforming its peers and may remain at this position even if all economies suffer from tariffs, counter-tariffs, and other non-tariffs barriers.

President Donald Trump met his counterpart Vladimir Putin on Monday in Helsinki. The encounter created extraordinary headlines from Trump, which seemed to believe Putin's "strong denial" of meddling in the US elections more than America's intelligence services. However, there were no market-moving headlines.

The focus now shifts to the all-important testimony by Fed Chair Jerome Powell. The world's most powerful central banker goes to Capitol Hill, and his agenda is packed. The Federal Reserve will first release his prepared statement before he reads it out and then answers lengthy questions from Senators today, and House representatives tomorrow. Trade and inflation are high on the agenda.

See: Powell preview: 5 market-moving topics to look out for

In the old continent, there are no significant events today, leaving the stage to Powell.

EUR/USD Technical Analysis

The EUR/USD broke above downtrend resistance on Monday. It did in an unspectacular manner, ticking up and holding its ground. This is a bullish sign. Momentum is marginal to the upside while the Relative Strength Index is rising gently.

Resistance awaits at 1.1760 which was a swing high on July 12th. 1.1795 was the peak on July 9th and remains of importance. The June 14th high at 1.1850 is next.

Looking down, 1.1695 capped the pair on July 13th and served as support on the 10th. Further support is at 1.1665 which was a swing low on the 11th and 1.1590 that was the low point of the month so far.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.