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EUR/USD stays positive near 1.2320 ahead of Powell

  • The pair’s up move run out of legs above 1.2340 today.
  • USD a tad weak, remains sidelined below the 90.00 handle.
  • German advanced February CPI and Powell’s testimony in the limelight.

The continuation of the selling pressure around the greenback is helping EUR/USD to stick to the daily gains in the 1.2330/40 band.

EUR/USD focused on German data, Powell

The pair is losing the grip during the European afternoon, fading the earlier spike to session tops in the 1.2340/45 band, all amidst some recovery in the buck and in-line results from the region’s docket.

In fact, EMU’s M3 Money Supply expanded at an annualized 4.6% while Private Sector Loans rose 2.9% on a yearly basis. Still in the euro bloc, Business Climate surprised to the upside in February and Consumer Sentiment came in at 0.1, matching previous estimates although falling from January’s 1.3.

Ahead in the day, advanced German inflation figures for the month of February should keep the attention on EUR prior to Fed Powell’s Semi-Annual Testimony before Congress.

Further publications across the pond include January’s Durable Goods Orders, Trade Balance figures and the CB’s Consumer Confidence.

In the broader EUR picture, risk appetite trends, German politics and the upcoming Italian elections should keeps investors entertained, while Chairman Powell is expected to deliver a cautious message emphasizing policy continuity.

EUR/USD levels to watch

At the moment, the pair is gaining 0.03% at 1.2321 and a break above 1.2361 (21-day sma) would target 1.2366 (10-day sma) en route to 1.2537 (high Jan.25). On the other hand, the immediate support emerges at 1.2260 (low Feb.22) followed by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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