- EUR/USD bulls still in play despite Powell’s speech.
- The bulls can target 1.0120/50 as long as 1.0000/0.9980 holds.
Federal Reserve Chairman Jerome Powell’s speech in jackson hole It did create some volatility, but nothing outside of daily ranges as it didn’t say anything significantly different than what Fed members have already been talking about. He was as aggressive as any other speaker, which leaves the status quo in place.
The Euro was initially rocked by momentum from the knees but has been technically unaffected on the 4-hour charts. EUR/USD remains above the key 1.0000 support zone. Illustrated below is the bullish bias as long as this support remains intact for the next few days, with a focus on 1.0120 if it breaks 1.0080.
EUR/USD Chart 4
The bullish harmonic pattern leaves a bullish bias on the charts as long as D hovers around 0.9900. In the short term, for positive conviction, the bulls will be more encouraged by holding the 1.0000/0.9980 zone, based on the support zone of the W formation. The neckline of the pattern is a 50% mean reversal of the range between CD points.
If we zoom down, we can see that there is resistance between the daily highs and 1.0080. This is a high volume zone that guards the target and 1.0145 higher.
Source: Fx Street
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