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- The US dollar falls sharply after the Fed chairman said the key rate was just below the neutral position.
- The EUR / USD is leaping close to a hundred pips and signals a possible trough.
The EUR / USD pair rose sharply, spurred by a sharp decline in the US dollar overall. The pair climbed from 1.1285 to 1.1367 in minutes. It erased weekly losses and reached the highest level in two days.
The rally could indicate that a short-term fund is in place at 1.1265 (28 November low). The strong recovery pushed the price above key technical levels as well as short-term moving averages. We are currently trading at 1.355 / 65, around the 20-day SMA.
Powell has defended the policy of gradually raising interest rates and said the current level is still low by historical standards, "and that they remain just below the wide range of estimates of the level that would be neutral for the economy, ie, neither acceleration nor slowing down. "The greenback fell on Powell's indication that rates are almost neutral.
Technical levels EUR / USD
If the euro continues to rise, it could face resistance at 1.1345 (27 Nov high), then 1.1360 and 1.1380 and 1.11415. On the other hand, support levels could now be reached at 1.1305, 1.1265 (weekly low) and 1.1235.
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