EUR/USD: On a downward trajectory, Powell's testimony eyed

EUR/USD's recent slide from 1.1095 to 1.0900 has put the bears in a commanding position.
Fed Chairman Powell to speak to Congress Tuesday and Wednesday.
The focus will be on Powell's take on coronavirus fallout.

Omkar Godbole FXStreet Contributor

EUR/USD is operating on slippery grounds, having dropped for the sixth straight trading day on Monday.

The single currency made a lower high near 1.1095 on Feb. 2 and has been falling ever since.

Bears in control

The pair formed a red "marubozu" candle last week, which comprises a long body and little or no wicks. The candle indicates a strong bearish sentiment.

The bearish follow-through seen so far this week has validated the marubozu candle. The pair 1.0958 to 1.0908 on Monday and is currently trading near 1.0910.

Focus on Powell's testimony

Federal Reserve chief Jerome "Jay" Powell will testify before Congress on Tuesday (15:00 GMT) and Wednesday.

With the global economy bracing for a potential slowdown tied to the novel coronavirus outbreak, the markets are expecting Powell to sound dovish.

That alongside low inflation has motivated markets to price in one and a half-rate cuts by year-end.

As a result, if Powell downplays the impact of coronavirus, the bid tone around the US dollar will likely strengthen, sending EUR/USD to three-year lows below 1.0879.

Apart from Powell's testimony, the pair may also take cues from the European Central Bank head Christine Lagarde's appearance at the European Parliament in Strasbourg at 14 GMT.

Technical levels

EUR/USD

Overview
Today last price	1.0914
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.0912

Trends
Daily SMA20	1.1049
Daily SMA50	1.1096
Daily SMA100	1.107
Daily SMA200	1.1122

Levels
Previous Daily High	1.0958
Previous Daily Low	1.0908
Previous Weekly High	1.1089
Previous Weekly Low	1.0942
Previous Monthly High	1.1225
Previous Monthly Low	1.0992
Daily Fibonacci 38.2%	1.0927
Daily Fibonacci 61.8%	1.0939
Daily Pivot Point S1	1.0894
Daily Pivot Point S2	1.0876
Daily Pivot Point S3	1.0844
Daily Pivot Point R1	1.0944
Daily Pivot Point R2	1.0976
Daily Pivot Point R3	1.0994

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday.

Gold eyes a daily closing above key 61.8% Fibo resistance

Gold is adding over 1% early Monday, after having gained 2% on Friday. The bright metal scales key technical hurdles, as buyers stay strong amid renewed tariffs and economic uncertainty alongside looming US-Iran geopolitical tensions.

Top Crypto Losers: Zcash, Pump.fun, and LayerZero extended losses as Bitcoin loses $65,000

The cryptocurrency market starts the week in panic mode, with altcoins Zcash, Pump.fun, and LayerZero. Bitcoin falls below $65,000 as the US President Donald Trump regroups amid renewed trade policy risks.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.