- The US dollar cuts losses as Powell testifies with no surprises.
- EUR / USD is in negative territory supported above 1.2130.
The pair EUR/USD it has rebounded towards 1.2166 after the first comments of Powell, chairman of the Fed, to later fall back to the 1.2150 region. The pair is dropping modestly during the day after rising earlier Tuesday to 1.2180, the highest level in four weeks.
The dollar has weakened after Powell’s initial testimony and then has rebounded. The Fed chairman has offered no surprises and monetary policy will remain accommodative.
On Wall Street, stocks have rallied, but now they appear to be weakening again. The Dow Jones falls 0.55% and the Nasdaq 2.18%. US yields fell from 1.38% to 1.34%, favoring a rally in metals.
The markets move without a clear trend, while risk aversion appears to be gaining momentum. If market sentiment deteriorates, the US dollar could benefit even more.
Moving lower, still above the key level
Positive momentum for the euro eased on Tuesday, but the pair EUR / USD still holding above 1.2130 And what is more important, 1.2110. A drop below that last level would point to additional losses. The next strong support is at 1.2080.
On the positive side, a recovery above 1.2160 should clear the way to more profit and a possible test of the recent high of 1.2180.
EUR / USD technical levels
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