EUR/USD: Indecisive despite Powell's dovish tone


  • EUR/USD trades flat near 1.2150, having faced rejection at 1.2180 on Tuesday. 
  • The pair trades well within Tuesday's indecisive range.
  • Lagarde's comments keep the EUR bulls from cheering Powell's dovish comments. 

EUR/USD lacks clear directional bias, with bulls refusing to step in despite dovish comments by Federal Reserve's chairman Powell. 

"The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain," Powell said in written testimony to the Senate Banking Committee on Tuesday, contradicting widespread optimism that the economy will grow rapidly this year, leading to early Fed tightening. 

So far, however, the dollar has remained resilient, keeping EUR/USD sidelined near 1.2150 and well within the range (high and low) of Tuesday's indecisive Doji candle. 

According to BK Asset Management's Kathy Lien, the European Central Bank President Christine Lagarde's recent comments on rising bond yields are keeping EUR/USD from cheering Powell's dovish comments. 

Lagarde said early this week that board members are "closely monitoring" rising sovereign bond yields, stoking fears of central bank intervention. 

Lagarde's comments, coupled with Germany's slow vaccine delivery and continued stock market weakness, could continue to hamper EUR's progress. 

The pair may find bids if the German data due at 07:00 GMT carries a big upward revision to the country's fourth-quarter gross domestic product (GDP) reading. 

Later Wednesday, the focus would be on Powell's testimony and US housing data. 

Technical levels

EUR/USD

Overview
Today last price 1.2152
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.2147
 
Trends
Daily SMA20 1.2092
Daily SMA50 1.2155
Daily SMA100 1.2015
Daily SMA200 1.1778
 
Levels
Previous Daily High 1.218
Previous Daily Low 1.2135
Previous Weekly High 1.217
Previous Weekly Low 1.2023
Previous Monthly High 1.235
Previous Monthly Low 1.2054
Daily Fibonacci 38.2% 1.2152
Daily Fibonacci 61.8% 1.2163
Daily Pivot Point S1 1.2128
Daily Pivot Point S2 1.2109
Daily Pivot Point S3 1.2083
Daily Pivot Point R1 1.2173
Daily Pivot Point R2 1.2199
Daily Pivot Point R3 1.2218

 

 

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