EUR/USD Price Analysis: Bulls push higher as focus shifts to Powell's testimony
- EUR/USD rises on Tuesday, trading at 1.0335 as momentum builds.
- Indicators show improving bullish traction, with the pair extending gains above the 20-day SMA.
- Fundamental drivers take center stage, with Powell’s remarks before Congress likely to dictate the next move.
EUR/USD continued its upward trajectory on Tuesday, gaining 0.30% to trade at 1.0335 as buyers extended their control above the 20-day Simple Moving Average (SMA). The pair’s technical outlook appears increasingly constructive, though the upcoming testimony by Federal Reserve (Fed) Chair Jerome Powell may introduce fresh volatility.
Technical indicators point to strengthening bullish momentum. The Relative Strength Index (RSI) has climbed sharply to 46, signaling growing buying interest despite remaining in negative territory. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is printing green bars, suggesting that bearish pressure has stalled, though a decisive shift into bullish territory is still needed.
Looking ahead, Powell’s testimony before Congress will be the key catalyst for EUR/USD’s next move. Any indication of a shift in monetary policy expectations could drive further volatility. The first key resistance lies near 1.0350, with a break above this level opening the door toward 1.0400. On the downside, immediate support is seen at 1.0280, followed by the psychological 1.0250 handle.
EUR/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
