Eurusd rises 0.5% amidst market anticipations ahead of Powell’s testimony

EURUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.5%	58 Pips
Week to-date	0.63%	73 Pips
June	2.18%	247 Pips

Upcoming key events (London Time)

Tue 03:00 PM USD Federal Reserve Chair Jerome Powell testifies

What happened lately

On Monday, the EURUSD currency pair experienced an upward movement, with the euro rising by 0.5% to reach 1.15770 against the US dollar. This increase occurred despite the absence of major economic news from either the Eurozone or the United States, indicating a possible shift in market sentiment or technical adjustments in currency positions. The euro’s rise could also reflect anticipation ahead of potential market-moving events, which could include speeches or economic data releases that might not have immediate visibility.

One of the upcoming events that market participants are likely focusing on is the testimony of Federal Reserve Chair Jerome Powell, scheduled for Tuesday at 3:00 PM. This event is categorized as having a high impact and will be closely watched by investors and traders. Powell’s comments on the state of the US economy, monetary policy, and future interest rate decisions could influence the direction of the US dollar. Any indications of tighter monetary policy or concerns about inflation could strengthen the dollar, potentially impacting the EURUSD exchange rate.

The rise in EURUSD on Monday might be a response to positioning ahead of Powell’s testimony, where investors could be seeking to hedge against potential fluctuations in the currency markets. If Powell’s testimony indicates a dovish stance or a delay in interest rate hikes, it could result in further depreciation of the US dollar, providing an upward trajectory for the EURUSD pair. Conversely, a hawkish tone might lead to a stronger dollar and a possible retreat in the EURUSD rate. Therefore, market participants should be attentive to Powell’s commentary for cues on future trading dynamics.

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What can we expect from EURUSD today?

EURUSD on Monday rose 0.5% to 1.15770. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for EURUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.16213 with break above could target R2 at 1.16656 or figure level area. While towards the downside, we are looking at daily low of 1.14531 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.15815 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is mixed as compared to the prior week.

Key levels to watch out:

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