EUR/USD has been struggling around 1.2050 as higher US yields support the dollar. US stimulus and jobless claims are also set to move markets ahead of Friday's jobs report but only Fed Chair Powell can dethrone King Dollar and push the pair above the 1.2110 resistance, Yohay Elam, an Analyst at FXStreet, reports.
See: EUR/USD to grind higher this year – HSBC
Key quotes
“Jerome Powell, Chair of the Federal Reserve speaks at 17:05 and may potentially hint the Fed is ready to act to bring returns down.
“Elevated US yields come as President Joe Biden accepted a compromise on stimulus checks – potentially paving the way for approving his covid relief package in the Senate. A vote in the upper chamber may come as soon as Thursday.”
“ADP's private-sector employment statistics showed an increase of only 117,000 positions, worse than expected. The ISM Services Purchasing Managers' Index fell short of estimates both on the headline and also on the employment component – critical for Friday's Nonfarm Payrolls report. Weekly jobless claims are due out on Thursday.”
“Euro/dollar continues suffering from downside momentum on the 4-hour chart and trades below the 50, 100 and 200 Simple Moving Averages, which are converging around 1.2110 – a critical resistance line.”
“Above 1.2110, the next levels to watch are 1.2150 and 1.2180. Some support awaits at the daily low of 1.2040, followed by 1.2020, a cushion from mid-February.”
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