It moves around the daily center pivot point at 1.1320

• The USD recovers some of Tuesday’s losses as the shared currency finished green amid aggressive comments from the Fed’s Powell.
• The EUR USD found dynamic support at the 50 hourly simple moving average (SMA).
• The Fed’s Powell favors a faster cut and expects inflation to moderate by 2022.

During the American session, the par EUR/USD it falls moderately, losing 0.20%, trading at 1.1320 at the time of writing. Market sentiment is bullish, as shown by US equity indices rising 1.06% to 1.50%.

US Federal Reserve Chairman Jerome Powell repeated Tuesday’s testimony about the CARES Act before a different Senate Committee. Summarizing some of Powell’s comments, he said that “[la Fed] He does not believe that wages will rise at a worrying rate that will cause inflation. “He reiterated that it is time to remove the transitory word from inflation and expects inflation to moderate in 2022, despite not being sure of the forecast. Powell added that” it is appropriate that they consider accelerating the downsizing at the next meeting to finish earlier. “

EUR / USD Forecast: Technical Outlook

As Fed Chairman Powell testifies in Congress in the last hour, the EUR / USD pair has remained subdued in a range of 40 pips, between 1.1318-58 without oscillating violently as in Tuesday’s session. At press time, the pair is testing the 50 hourly SMA at 1.1318 for the third time on the day, coinciding with the daily center pivot point, indicating that robust support could deter USD bulls from pushing. peer down. In the result of a breakout of the latter, the first support would be the 100 hourly SMA at 1.1289, followed by the 200 hourly SMA at 1.1267.

On the other hand, if the 50 hourly SMA holds, the first resistance would be Wednesday’s cycle high at 1.1359. A breakout of that level would expose the November 30 high at 1.1382, followed by the R1 daily pivot point at 1.1401.

Technical levels