• US dollar tumbles during Powell’s press conference after Fed rate hike.
  • EUR/USD back in recent range, looking now at 1.0500.
  • Wall Street adds to gains, and Treasury yields decline.

The EUR/USD bounced from near the May low and jumped back above 1.0450. As Powell’s press conference ends, the pair is hovering around 1.0460, almost 70 pips above the level it had before the FOMC statement.

A weaker dollar boosted the EUR/USD from the four-week low at 1.0357. It is back in the weekly familiar range. A break above 1.0500 should strengthen the recovery of the euro. On the flip side, under 1.0390 a new test of the year-to-date low at 1.0345/50 seems likely.

Fed moves, traders sell the fact

At the end of the June meeting, the Federal Reserve decided to raise its target interest range by 75 basis points, the biggest move since 1994. In the statement, the Fed mentioned that more rate hikes are coming and warned about the increasing risks of a recession.

Fed Chair Powell mentioned he does not expect 75bp rake hikes to be common. He said the pace of rate hikes will depend on incoming data. Inflation developments warranted a bigger hike at the June meeting, Powell commented.

The dollar turned lower after his comments while Wall Street indices rose sharply. The Dow Jones is up by 1.27% and the Nasdaq gains 2.80%. Treasuries recovered with the US 10-year yield falling to 3.33%.

The improvement in risk sentiment and lower US yields pushed the dollar to the downside across the board. The DXY is falling 0.70%, the worst day in almost a month. The rally of the dollar is being challenged at the moment.

Technical levels

EUR/USD

Overview
Today last price 1.0441
Today Daily Change 0.0025
Today Daily Change % 0.24
Today daily open 1.0416
 
Trends
Daily SMA20 1.0645
Daily SMA50 1.0658
Daily SMA100 1.0908
Daily SMA200 1.1189
 
Levels
Previous Daily High 1.0485
Previous Daily Low 1.0397
Previous Weekly High 1.0774
Previous Weekly Low 1.0506
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0451
Daily Fibonacci 61.8% 1.0431
Daily Pivot Point S1 1.0381
Daily Pivot Point S2 1.0345
Daily Pivot Point S3 1.0293
Daily Pivot Point R1 1.0468
Daily Pivot Point R2 1.0521
Daily Pivot Point R3 1.0556

 

 

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