EUR/USD soars above 1.1350 as US dollar tumbles on Powell’s comments

US dollar drops sharply across the board after Fed Chairman says policy rate is just below neutral.
EUR/USD jumps almost a hundred pips and signals to a potential bottom.

Matías Salord FXStreet

The EUR/USD pair broke dramatically to the upside boosted by a sharp slide of the US dollar across the board. The pair climbed from 1.1285 to 1.1367 in a few minutes. It erased weekly losses and reached the strongest level in two days.

The rally could signal that a short-term bottom is in place at 1.1265 (Nov 28 low). The sharp recovery pushed the price above key technical levels and also on top of short-term moving averages. Currently is trading at 1.1355/65, around the 20-day SMA.

Powell defended the gradual interest rate hike policy and said the current level is still low by historical standards, “and they remain just below the broad range of estimates of the level that would be neutral for the economy, that is, neither speeding up nor slowing down growth.” The greenback dropped on Powell’s indication that rates are near neutral.

EUR/USD Technical levels

If the euro continues to rise, it could face resistance at 1.1345 (Nov 27 high), and then at 1.1360 and 1.1380 and 1.1415. On the flip side, support levels now could be seen at 1.1305, 1.1265 (weekly low) and 1.1235.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY: Heavy near 153.50 as BoJ rate hike bets boost JPY

USD/JPY is sitting at six-month lows near 153.50 in the Asian session on Tuesday, as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to boost the Japanese Yen. Meanwhile, US Dollar selling remains unabated despite hawkish Fed expectations and rising geopolitical tensions, lending additional support to the pair.

$4,465: Gold looks to regain 21-day SMA amid sustained USD weakness

Gold has snapped a two-day losing streak early Tuesday, staging a decent comeback toward $4,450 after finding strong buyers below the $4,400 level. Gold is looking to resume its recovery from four-week lows of $4,283 hit last week, capitalizing on sustained US Dollar weakness across the board.

Bitcoin whale profits hit record $9.07B, long-term holders increase on-chain activity

Bitcoin’s (BTC) short-term holder (STH) whales have reached a record level of unrealized profit, raising concerns that increased profit-taking could put pressure on the market during its current consolidation phase.

Why Oil is setting up for its most explosive move in years

The biggest Commodity trade of the year may be hiding in plain sight. Gold, Silver, Copper and Agricultural Commodities have already delivered some of the most dramatic repricing events of 2026, rewarding traders who recognized early that scarcity, geopolitical fragmentation and constrained supply were becoming dominant market forces.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.