- EUR/USD touched 1.0615 after Fed Chairman Powell’s speech sent the dollar reeling.
- Initial jobless claims in the US were better than expected, helping to improve investor sentiment.
The pair EUR/USD quickly rebounded to 1.0616 following optimistic comments from Federal Reserve (Fed) Chairman Jerome Powell. Markets have largely absorbed the Fed-fueled reaction, with the Euro (EUR) holding near pre-Fed intraday highs, while the US Dollar (USD) takes a slight step back for the Thursday.
Market risk appetite is improving today, keeping the USD lower as investors return to risk assets.
Initial jobless claims in the US exceeded expectations, showing only 198,000 new jobless claimants for the week of October 13 compared to the expected 212,000, although the previous week’s figure was revised from 209,000 to 211,000.
This week the Fed appearances do not end, since in the next 24 hours there will be five more appearances by Fed officials.
EUR/USD Technical Outlook
Thursday’s Fed-driven rally puts EUR/USD in chart territory just north of a firm descending trend line from 1.1275, and a sustained breakout will see the pair continue to rise and could attempt to reach the simple moving average (SMA). ) 50 days near 1.0700.
On the bearish side, the last swing low at 1.0500 lies nearby as technical support, with a break of that level opening the way for a new bearish run towards 2023 lows near 1.0450.
EUR/USD Daily Chart
EUR/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
